Deciding to keep your business in the family or to sell up
Keeping your business in the family
Selling to management or employees
The crucial question is: Are any of your staff members interested in taking over your business?
- Finding out who’s most interested in continuing your business over the long-term.
- Whether your staff can find sufficient capital to buy you out.
Being bought out by your business partner
On the downside, your business partner will have a strong bargaining position perhaps not agreeing with your preferred selling price.
Offering your business to investors
There are often two types of investors, namely:
- A strategic buyer – who wants your share of the market. These buyers may see your business as a natural extension of their own.
- A financial buyer – who simply wants to make your profits, assets, and the value of your business their own.
There are some businesses that naturally work as franchises – where the original business is replicated multiple times but with different
owners and royalties paid to the original owner.
Franchising your business involves plenty of forward thinking – you’ll need time to determine whether your business would work as a
franchise, to get a few franchises up and running with the right training manuals and standardized products or services.
Following expansion, you may find yourself in a position to sell your original branch and to live off the royalties into retirement.