“Maybe we should sell the family business.”
It’s a trigger for debate within a family. Some family members will agree it’s a necessity. Others will see it as a betrayal to previous generations. How do know when it’s time to sell the business?
Deciding when to sell your family business is both a financial and personal decision. Typically, families look to sell when the costs of ownership outweigh the benefits. But there are also emotional relational factors to consider.
Some families sell to diversify assets, reduce conflict, or transition to passive investments. Others choose to hold onto the business because of strong attachments to legacy or employees, or a general desire to keep the business for future generations.
Ultimately, the owner group must reconcile these conflicting priorities to reach a decision. This is no easy feat. And it starts with normalizing the conversation around selling the business.
Check out “Is It Time to Sell the Family Business?” for five steps to take if your family business is considering a sell.
Read about when to sell the family business here.
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