family business

What Sellers Don’t Expect When Selling Their Companies – Business Article

Everyone Must Be Considered Many mid-sized, privately-held companies also have minority stockholders or family members who have an interest in the business. The managing owner may be the majority stockholder, but in today’s business world, minority stockholders have strong rights. The owner must deal with these people – first in getting an agreement to sell, then convincing them about the price and terms. A “fairness opinion” can help resolve some of the pricing issues. Minority stockholders and family interests must…

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Transferring Your Business to a Family Member: 5 Key Factors – Business Article

Factor #2: The Buy-Sell Agreement When transferring a business, don’t overlook the importance of the buy-sell agreement, which works to put everything in writing. You may be tempted to forgo a contract since you are dealing with a family member, but this is a mistake, no matter how close you might be with your loved ones. A buy-sell agreement adds clarity to the process, which can help to keep confusion levels low and the chance of success high. When the time…

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Maintaining Confidentiality Throughout the Sale Process – Business Article

A breach in confidentiality can negatively impact everyone from suppliers and vendors to creditors. For example, vendors could change their terms and this, in turn, could have a major, negative impact on cash flow. There can be a chain reaction of events that spirals out of control. Negative Outcomes of a Confidentiality Breach The potential negative outcomes of a breach in confidentiality are numerous. For example, if employees and customers learn you are trying to sell, they could grow concerned…

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