Key Considerations for Selling a Family Business

• November 10, 2022
• Richard Willis

Running a family business can certainly be an exciting venture. But when it comes to selling it, the process can be a complicated one. The sale of the business can be executed in many ways, and there are many things you should consider before going ahead with it. So, if you’re thinking of selling your family business, here are some key considerations for your convenience.

Make Sure Everyone Is on the Same Page

One of the first things to consider is whether or not the family members involved with the business are willing to work together during this tricky process. If they’re not willing to work together, then it’s best to find a professional who will be able to guide the process, take everyone’s wishes into consideration and take all the necessary steps without the extra hassle. This way, everyone will be able to voice their concerns without creating tension in the family.

Assess the Worth of Your Family Business

Another important consideration is whether the business is worth more than the price the prospective buyers can offer. This is a difficult question to answer, but it’s important to take your time to think about it properly. The sentimental value of the company you built is high, without a doubt. But what you need to ask yourself is what the business itself is worth without the added value of it being run by a family.

Finding the Right Buyer

Before putting your business up for sale, it’s good to keep in mind that you might attract interest from different types of buyers. This is where you need to assess whether it’s important to you to find someone who will want to continue operating the business as a family-run company or not. For example, some buyers may want to turn it into a rental property or a commercial office space. Deciding on your preference before preparing the business for sale will go a long way and save you valuable time when it actually comes to listing it.

Final Thoughts

Family businesses can take years to build from the ground up and make them successful. Naturally, selling it can be an emotional decision and will require a lot of thought. From finding the right buyer to assessing the value of the company, there are plenty of aspects you should consider before selling your family business. But if you prepare in advance, you’re guaranteed to have a smoother sale!