This is the first part of a mini series on Selling Your Business with Brouse McDowell. To read part two, click here.
Business owners today have many more options at their disposal when evaluating potential exit alternatives. In order to be able to properly analyze these options, you must develop their near-term and long-term personal objectives. Are you concerned about your legacy in relation to who owns the business going forward? How much longer do you want to work? If you are ready to retire soon, then you must be confident that selling your business generates enough value to meet your financial requirements.
Business owners may want to consider options to take some liquidity now but maintain either a minority or majority share of the business through a recapitalization. This option is well-suited for a company with attractive growth options (organic/acquisitions) that can generate increased value, but also has significant equity today that can provide near-term financial security. In the case of a recapitalization, owners must consider whether or not they can effectively work with a partner.
To continue reading part two, click here.