Here’s what you need to know before selling your business to family

Marc L. Goldberg

Exiting a business after a lifetime of nurturing “your baby” is tough. It is doubly challenging when the transfer of ownership, management and leadership is to a child or children.

Divestopedia’s Josh Patrick has advised owners who are in the process of planning their next performance to consider a number of factors.

Give your adult children time to gain experience under the tutelage of someone other than you, the parent. Having proven experience in a similar business will be instrumental in the success in assuming the reigns of the family-owned/-operated enterprise.

Mark Goldberg

When planning for transitioning the business do not create jobs for your adult children, let them grow into existing jobs by learning the ropes of the business and earning the roles to which they are assigned. If a job is created for the younger generation of owners, then a multitude of problems may arise that might not have existed if they had earned the job.

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