It is important for owners to become dispensible for them to be able to sell their business one day, but be sure to remind your business owners to not allow their management team to become too indispensible.
Perhaps the mostbasic tenet of Exit Planning for business owners is that owners should maintain control of their companies until they attain all their goals and aspirations. This tenet applies, perhaps even more so, to transfers of family businesses.
The failure of families to successfully and happily transfer business ownership from one generation to the next is the stuff of movies. Family discord has been celebrated since the dawn of recorded history.
From our findings, about two-thirds of Exit Plans result in inside transfers as opposed to a third-party sale. We believe the reason for this is simply a lack of knowledge of ownership transfer options.
Even in the middle of a worldwide pandemic, there is still opportunity to grow enterprise value by acquiring competitors. This growth strategy has long been a favorite of well-financed strategic buyers.