Selling your business can be stressful and overwhelming, and many factors must be considered in this high-stakes transaction: timing, deal structure, and legacy goals are just a few. However, armed with knowledge and guided by experienced professionals, business owners can expect a profitable and efficient transaction. Be aware of the following preventable mistakes so you can anticipate and prepare for specific issues that may come up during the deal process.
Family-owned businesses, a key pillar in the American economy, make up a significant number of the privately held companies across our country. Although these companies cut across all industries and range in size from small to large, they all share common challenges. The most daunting of these challenges is how to manage the transition of the business from generation to generation. Keeping the core family values balanced with an ever-changing market place and often diverging goals amongst the family members is a challenge that many family businesses don’t survive. One intriguing solution to this challenge for many family-owned businesses is to bring the employees into the shareholder group through the sale of stock to an Employee Stock Ownership Plan (ESOP).
Regardless of when or how you plan to exit, data indicates that having an exit strategy increases the odds your business will sell for optimum value. It is in your best interest to understand thoroughly—and well in advance of your exit—how each strategy affects you, your company, and your employees; only then will you be able to craft an effective exit strategy.
When contemplating the sale of your transportation business, it is important to assess your company's readiness. Come to the table as an educated negotiator, knowing the value of what your company has to offer.
As you begin to think about the future of your agriculture business, it is essential to understand what buyers are looking for.