Business owners in Colorado who are thinking about selling their business may want to start the process sooner than later. Economic uncertainty makes timing critical. If an owner can wait about five years, there is no problem. However, if a person wants to sell in one to three years, now would be a good time to start the process.
Not that long ago, it was assumed that a person would pass their business on to the next generation. However, things have definitely changed. Many business owners do not want to force their children into a role they do not want and often use the funds from the sale of a business to help their children invest in a new venture. Nowadays, it is more common for families to pass on entrepreneurship as opposed to actual businesses.
There are a couple of transition options that business owners could consider. There is the option of third-party sales either to strategic buyers or private equity. Internal transitions involve grooming someone who is already part of the company to assume ownership of it by a certain date. This process can take many years. There are also external transitions, which involve hiring a person to purchase the company and assume leadership of it.
There are several reasons why selling outright can be safer than transitioning. It may make more financial sense and protect a family. An individual who is interested in selling a business may wish to discuss their situation with an attorney. The attorney may answer questions about sale and dissolution, corporate finance, business transactions and exit strategies. The attorney may also help an individual file the correct paperwork and draw up documents that are needed to protect the person as they sell their business. If it is necessary, an attorney might represent a client in court.