A popular way of exiting your business is the trade sale option. This allows you to partially or fully withdraw from the business and dispose of your company’s shares or assets – and even some or all of your liabilities – to a trade buyer.
- Provided you have maximised your business value, and this is a big proviso, then the number one upside is Cash up-front and financial security for yourself and shareholders.
- You don’t have to worry about who will run the business and all shareholders receive their pro-rata share of the Cash, fair and square.
- If your business has benefited from a spruce-up prior to sale – refer to our change program on the Home Page – you can benefit from the premium associated with being a must-have company in your sector.
- Even where the business is sound, a new buyer will try to change things. They cannot help themselves. If you wish your legacy to endure, then selling to a 3rd party will put this at risk.
- If you don’t receive the bulk of the sale proceeds as Cash at closing, then you are putting yourself and your shareholders at immense risk.
Important Caveat – Choosing whether this transition alternative, or a mix of the other 7 alternatives on our website, is right for you really depends on your (and your shareholders) individual circumstances. This important decision requires careful analysis, before deciding which alternative strategy suits your circumstance the best. Smart transition decisions.