 | Steve Fischer is the president of Advantage Business Group in Wichita, an owner in the VR Business Brokers network of offices. With national and global reach, VR is one of the nation’s premier networks of professional business intermediaries. A life-long Kansan and previous business owner, Steve’s office exemplifies the service and professionalism that a business brokerage provides to the buyer and seller in today’s market. To learn more, visit www.VRplains.com or www.VRBB.com. Steve can be reached by phone at 316-262-8722. |
Business
2010-10-01 10:11:00
Selling the family business
Answer: Family businesses are a different ball of wax. Family businesses may resemble their non-family counterparts in most ways, but there’s one crucial difference. Whenever close relatives work together, deep emotions invariably become involved, emotions that can further complicate the already difficult decision whether to sell a family enterprise.
If you’re thinking about selling a family business, don’t overlook what your emotions are telling you about the potential sale. In some instances, you’re better off listening to your head. But it’s just as important to consider what your heart is telling you.
Your decision to sell a family business may start with financial need. You’re looking ahead to retirement and want to feel more secure. Maybe you see stiff challenges ahead for your company. With fewer growth prospects available and increased competition looming, the desire to continue has waned.
You might also look to sell a family business if no one in the next generation has stepped up as an obvious successor.
In addition, the stress of working together can be too much for some families to handle comfortably. Family strife is always unpleasant. When family members who work together don’t get along the tensions can spill into the workplace. This can make for a destructive personal and professional environment.
Selling a family business can feel like selling a part of your family. If you sell, your decision will have a significant impact on the lives of people you care about: relatives, employees, and, especially if the business is in a close-knit community, local residents.
Your decision to sell may be especially stressful if you’re thinking of selling a business handed down to you. You may wonder about what your predecessors would do in your shoes.
With such factors to consider, you may decide to keep your business. This is a decision that will allow you to maintain your independence, and pass on to future generations the same opportunities that you received.
Before you decide to list your business for sale, make sure you discuss your expectations with the members of the next generation. If your chosen successors aren’t interested or able to manage the business, you may be setting the stage for serious family conflict.
There are no easy answers. Sometimes, selling your business may be the best solution for everyone involved. Providing you and your family with the assets you need to pursue your dreams is a significant accomplishment for any business, whether you decide to keep or sell.
Because the decision to sell can be highly emotional, make sure you are comfortable with the idea of selling. Just because the numbers may add up, doesn’t mean you’ll be happy when you no longer have the business that has been an important part of your family. In many cases the advice of a professional can make this decision easier. Whether that person is your accountant, attorney or business broker is up to you.
