The most important yet frustrating business experience for private, corporate or public owners is the sale of the assets or stock of a going business. For private sellers, a sale is almost always a once-in-a-lifetime decision
The sale of a privately held company affects the owner, their family, their estate and their employees. It is usually a deliberate, positive decision, yet sometimes, it's the result of urgency or distress.
Selling a privately held company can provide estate liquidity for the owner and their family by separating their capital and their career. Other considerations are retirement, health, age, boredom, marriage or partnership dissolution, or the lack of family interest. The prospect of going public is less viable or desirable than it used to be. The alternative of merging with a larger company often means the loss of identity and independence.
The key aspect of a sale is to interest a bonafide buyer who has the ability to react quickly, discreetly and professionally - no matter what your selling reasons are.
Frequently, the best decision for a privately held company is to sell for cash or cash and notes to a private investment firm. The seller's thereby preserve the continuity and independence of their company for their management and employees by retaining established relations with customers, suppliers, accountants, attorneys and banks.
Click here to go to the next step: Investment Process.
|
