It’s not uncommon for businesses to be owned, managed or funded by multiple familiy members…
And this can bring a unique set of challenges 🙂
So – when it comes to an exit from a family-owned business – there are other unique challenges to think about.
🔸 FAMILY DYNAMICS. At play in a family-owned business, regardless of an exit. But a shared vision of the exit (from the outset) and a regular restatement of that vision, can help maintain harmony along the way.
🔸 INTANGIBLES. A real double-edged sword. Because part of the value in your business is from intangibles like brand reputation and loyalty from the workforce. If you remove the family from the equation, you need a clear mitigation plan to present the new owners.
🔸 LEGACY. If your family name remains ‘above the door’ and you lose control of the business, how might future decisions by new owners affect your legacy?
🔸 ROUTE TO EXIT. Implementing all the pieces of the jigsaw required for a successful exit takes expertise and resolve. Partnering with outside investors and M&A specialists is one way of navigating the minefield.
🔸 TRANSFER OF ASSETS. Untangling who gets what – and who gets impacted by what – in any family exit negotiation, takes a special kind of patience and expertise. Especially in long-established and multi-generational companies.
🔸 EMOTIONAL SIDE. Exiting a family business is not simply a financial decision, but a deeply personal one. Family relationships will endure well beyond family control of the business.
#FamilyBusiness #ScaleTo Exit #SME #UKBusiness #M&A