Blog Library

Thinking of Selling Your Business? Consider an Internal Sale

Posted by Jane Johnson on Wed, Dec, 07, 2016 @ 10:41 AM

Most business owners think that they simply will sell their business to a third party when they are ready to retire. But consider this: less than one in four of the businesses that go on the market for sale actually sell. And while it is true that a third-party sale of a business typically results in a higher gross sale price for a business than an internal transfer, an external sale may not always be the best option. It seems to reason that you should seek the highest sale price, but there are a number of other things that you need to consider.

Read More

Topics: family business planning, ESOP, internal sale of your business

Identifying and Preparing Successors for a Business Transition

Posted by Kathy Richardson-Mauro on Tue, Jun, 21, 2016 @ 03:52 PM

There can be many advantages to selling a business internally, but there can also be some challenges. One of the main challenges is maintaining objectivity about the situation, including your potential successor’s capabilities and whether they align with the needs of the company. If you plan to transition your business internally, make sure that you take the time to properly evaluate your potential successor(s) and develop his or her business and leadership skills well in advance of when he or she will actually take over the business. Some managers are fit for future leadership, and possibly ownership, while some are not. Going from an employee to an owner is an interesting and tricky process that can be a challenge even for the most skilled manager.

Read More

Topics: family business planning, Business Ownership Transition Planning, succession planning, business ownership transition success, choosing a successor, Grooming a successor, passing business to my family', family business challenges, family business successors

Advisor Webinar: Planning For Successful Family Business Transfers

Posted by Jane Johnson on Fri, Apr, 08, 2016 @ 11:51 AM

The number of business owners who will be attempting to transition out of their businesses in the next 5-15 years is staggering, and those who are prepared with a planned transition in place will have a distinct advantage over those owners who have left their largest transaction to chance. 

Read More

Topics: family business planning, Family Business Transfer, Business advisors for family business, business advisor webinar, family business transition

Keeping the Peace During a Family Business Transition

Posted by Kathy Richardson-Mauro on Mon, Mar, 21, 2016 @ 06:25 PM

Even if you don’t plan on transitioning away from your business for years, having a comprehensive, holistic plan in place gives you peace of mind, knowing that your business, your future, and your family’s future are secure. While many owners of family businesses want to keep them in the family, often, family dynamics can present challenges and concerns not present in other business ownership structures.

Read More

Topics: family business planning, family business, passing business to my family', family business peace, selling business to family

Exploring the Benefits of Internal Business Transfers

Posted by Jane Johnson on Fri, Oct, 30, 2015 @ 11:30 AM

A recent article in National Driller magazine, “How Can a Driller Ever Retire? ESOPs May Help,” highlights the fact that business transitions are an issue across industries in the U.S. And while many people think they may sell their businesses externally, an internal transfer or sale may provide a better option for owners to achieve their financial and non-financial long-term goals. 

Read More

Topics: family business planning, Selling Your Business Internally, Internal Transfers, exit plan, Family Business Transfer, ESOP, Employee Stock Ownership Plan

Understanding How Privately Held Businesses Are Valued

Posted by Jane Johnson on Fri, Oct, 23, 2015 @ 04:02 PM

In our post, The Disconnect Between Owners’ and Buyers’ Perception of Business Value, we discussed that it’s quite common for owners to believe that their business is worth more than what potential buyers might be willing to pay, which can become a big issue for owners looking to sell their businesses. After all, they have spent most of their time, money, and effort on starting and growing their companies. How could others NOT value what they have built?

Read More

Topics: family business planning, privately held business, business price, business transfer, business value, increase business value, business transition

Business Transition Lessons Learned: The End of a Family Business in the Third Generation

Posted by Kathy Richardson-Mauro on Fri, Oct, 16, 2015 @ 04:40 PM

This case about the demise of a multi-generational family business highlights how important it is for owners, especially of older family businesses, to remain vigilant, innovate their products and services, engage in succession planning, and determine strategies to protect the family’s wealth for the long-term. Sadly, this story is more the norm than the exception; only around 30% of family businesses survive past the second generation and the odds only get worse after that – only 3% survive to the fourth generation. With proper planning, this family business could potentially have been passed on to the fourth generation and the family’s wealth would’ve remained intact.  

Read More

Topics: family business planning, family business, Selling Your Business Internally, Family Business Exit, Family Business Transfer

The Keys to Effective Succession in Family Businesses

Posted by Kathy Richardson-Mauro on Thu, Jun, 18, 2015 @ 10:00 AM

“Family businesses and their leaders are the ultimate entrepreneurs. They must continually innovate to grow and pass on a thriving business from one generation to the next. Our survey demonstrates how this entrepreneurial thinking across generations results in business success and strong family ties.” ~Carrie Hall, EY Americas Family Business Leader

Read More

Topics: family business planning, family business, business owner transition, business ownership, baby boomers, Family Business Exit, Family Business Transfer, business ownership transition, successsion

Why Spouses Should be Involved in Business Ownership Transition Planning

Posted by Jane Johnson on Mon, Sep, 22, 2014 @ 12:33 PM

Read More

Topics: family business planning, business owner transition