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