Nearly half of all offers to buy a business are unexpected, but there is a good chance that you and your business succession planning might not be ready for such an offer.
If you do not have a transition plan in place and have not addressed many of those common questions on business succession planning, you could be setting the company and any remaining employees up for a very difficult situation. Every business will transition in the end, whether it is passed down to the future generation, acquired by a competitor or sold to a private equity firm.
The important thing to remember is that the owner should to try to sell at a maximum value and in a method that benefits everyone involved. A business transition and business succession planning attorney can be extremely helpful for allowing you to make educated decisions and to put down a foundation for future success prior to a buyer coming knocking.
Approximately, 45% of current business sales are opportunistic, according to research completed by the National Center for the Middle Market. Business owners that are suddenly responding to an unsolicited offer may not be able to derive the highest possible value in such a transaction. These unexpected offers can cause business owners to really consider what is next for them personally and this is likely a process that you haven’t considered in advance if you don’t have the support of a business succession planning attorney.
With business succession planning already completed, owners are better able to capitalize on opportunities to achieve personal goals and to maximize wealth when selling the company. Strategic buyers are now searching for acquisitions, which can be good news for many family business owners and entrepreneurs unsure of what will happen to the company in the future. However, planning early is critical to ensure that owners are not caught during the next down cycle and there will always be another down cycle expected in the future. If you or someone you know is ready to discuss business succession planning options, schedule a consultation with an attorney today.