When private company owners think about how they’ll transfer out of their business, they often think of technical matters like the M&A climate and taxes. While these are important considerations, the first thing any business owner should do when contemplating a transition is to think carefully about their motives for what they want life to look like after their exit. Gaining clarity about your motives will provide critical insight into which transition option is best for you and your business.
When considering motives, money is usually the first thing that comes to mind. However, its importance can vary depending on your circumstances. Plus, money typically is not the only motivating factor in a transfer. In fact, it may not even be the most important factor. Other common motives are family, employees, business legacy, community, and the owner’s role in the business after the transition.
In this article for Philadelphia Business Journal, Brian J. Sharkey, Director-in-Charge, Transaction Advisory and Business Valuation, discusses the critical importance of understanding your motives as well as various options to transfer out of your business.