biz plan

When discussing a possible sale of a business, it’s important to talk with the right people and surround yourself with a supportive team. Many business owners first talk with their families, especially if the sale is part of retirement plans, if family members are employed by the business, or if a sale will result in the owner spending more time at home. Other likely suspects for pre-sale conversations include CPAs, business brokers, business appraisers, business attorneys, financial advisors, and estate planning attorneys.

Assuming that selling the business is still the best strategy, there are lots of ways to structure the transaction. Well-thought-out plans will take into account the tax consequences as well as the possibility of a company being sold to an insider, or passed on to a family member who has been involved with the business, or it might be marketed to third parties, such as competitors or “strategic” investors.

More complicated transactions include an initial public offering (IPO), which is when a private company goes public and its shares are traded on a stock exchange, and employee stock ownership plans (ESOP), which transfer a company’s stock to its employees. We’ll explore each of these concepts in more detail later. Stay tuned.