Most family businesses don’t plan to sell the business. However, successful family businesses will attract buyers. What should a family business do when a legitimate offer comes their way? Start by determining whether or not the buyer is legitimate.
According to Travis Harms, there are two types of buyers: motivated and opportunistic. Motivated buyers are able to pay an attractive price for the business. Opportunistic buyers, on the other hand, are seeking to take advantage of a cyclical weakness or temporary market dislocation to buy the business at a depressed price. Obviously, you should avoid opportunistic buyers. But how do you know if you’re dealing with an opportunistic buyer?
Find the answer in “How Should Family Businesses Respond to an Acquisitions Offer?” You’ll learn the five steps to evaluating an acquisitions offer.
Read about the five steps to evaluating an acquisitions offer here.
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