It can sometimes feel overwhelming, if not impossible, for small business owners to find a buyer for their small business interest.  This can be particularly true if no family members are involved, or interested, in taking over the business.  However, identifying a buyer for your business interest can be a crucial undertaking to realize on the value of your lifetime of work.

How do you identify the subset of entrepeneurs who might appreciate the potential and value of your small business?  In many cases, these are likely to be the same entrepeneurs who understand your industry.  How do you identify the entrepeneurs who not only understand the potential of your small business, but have the financial means to purchase it?

Planning ahead can make all the difference for small business owners.  A promising source of buyers for a small business owner, may be the business owners’ own partners or employees.  Frequently, they are more likely to value and appreciate the potential of the business, and their understanding of and experience with your business puts them in a position to best realize the potential of your business.

If you have never had a co-owner, perhaps it may be worth considering selectively adding co-owners to both grow the business, and potentially help create a market for your business interest down the road.  Do you have fellow business owners or employees who might capably take over the business, but do not have the financial wherewithal to do so?  Depending on your situation, perhaps a buy-sell agreement funded with life insurance might be a solution.

Plan ahead.  Plan ahead.  Plan ahead.

[Legal advice not only involves an understanding of the law, but the application of the law to a particular set of circumstances or facts.  Typically blog posts are imperfect tools to address the subtlety and exceptions of the law that may apply in particular situations.  As a result, the information in this blog post does not represent legal advice.  If you are in a situation where you need or desire legal advice, we would be happy to help.  Check out our Contact Us page, and feel free to set-up a no-charge initial consultation.]