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COACHING BUSINESS OWNERS
   
 
 
 
At Key Transitions in Their Careers and Lives
 
 

 

EXTERNAL or INTERNAL SALE 

To create your personal and your company’s future, you must decide how you will extract yourself from your company. You want to withdraw your wealth on your terms, when you want to sell.

An early decision is ‘Do I sell internally or externally?’ The answer to this question sets the stage for everything that follows.

EXTERNAL SALE

For many owners an external sale – to an outside buyer – is the best solution. This is especially true if:

  • Your company has high strategic value – the outside buyer is willing to pay more than the book value, what you would get if you sold to your staff.  
  • You want to harvest your investment in a short period of time – faster than you could get if you sold to your staff.
  • You didn’t develop ‘the next generation’ of leaders and potential owners.  Your passion has always been the product or marketing side of the business.
  • You don’t have staff people who are prepared to buy the firm.
  • You don’t have people with the passion and ability to lead the firm.
  • You have prospective internal buyers but they don’t have the financial resources to purchase the company on your terms and your timetable.

In the case of an external sale, you need a qualified buyer. It’s important to recognize that the sale process might take a while. Often it is wise to retain a business sale consultant to help you establish a value, set an asking price, find prospective buyers and work through the negotiations.  

This is not our type of work but we can direct you to specialists in this field.

INTERNAL SALE

An internal sale involves selling your interests to people in your firm; partners, staff and/or family. If you intend to sell the firm to your partners, staff or family members the ‘lead time’ required to make the transfer is long – often several years.

To have a successful transfer it’s essential to have developed qualified people with a passion for leadership prepared to acquire the business. It’s not enough to have good ‘Number Twos,’ people who are satisfied to follow directions rather than start new initiatives.

It’s important to identify people who have the energy and the skills to lead the company. And it’s important to select them well in advance and build their capabilities. They also need to be able to work together. They are the future of the company, your legacy.

Helping you build a strong organization with qualified people is one of our strengths.

Whether an internal or external transfer, it begins with you – the owner who wants to withdraw from the company and move into the next phase of your life. To learn more, please go to Who We Work With to learn about the people and companies we work with.

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