Business Transfer Model 5 – Takeover by Another Company

Steps to a successful business transfer:

Step 1 – Define the Personal Goals of the Owner

The owner must therefore balance his financial and interpersonal goals in order to find the best possible exit strategy

Step 2 – Understand that a Range of Values Exist for the Business

The value of a privately-held business depends largely upon who buys  it. ‘External transfers’ to other industry players, financial groups, or by initial public offering, command more liquidity ‘up front’ while the owner relinquishes more control over the company

Step 3 -Examine the Options Available for the Transfer of Shares

There are three primary purchasers of privately-held business stock (or assets):

Parties to the transaction and types of transactions available (samples; not a complete list) qFinancial Groups  – Recapitalization qIndustry Buyers  – Acquisition (at Synergy Value) qInitial Public Offerings – IPO (at Public Market Value)

Step 4 –  Provide Full Financial Disclosure to the Buyer

Assembling financial records and presenting them to a buyer is very time consuming, not a lot of fun, a  very personal survey of how the business is run.

Step 5 – Assemble Your Advisory Team –  Don’t Go It Alone

Invest the time and money in the right team of advisors; a successful business exit is more than worth.


Business Transfer Model 5 – Transfer to Another Company