Selling a family business

Bemused17

Hi,

We are looking to sell our family business.
We don't want to draw attention to it too much as we don't want employees to know as it is not 100% yet.

We have no idea who to speak with in relation to this.
We are a small company in the country. We are worried if we just close it, there will be nothing for our parents to live on. It is a well established company.

How does one start to sell a business?

Lockedout2

Bemused17 wrote: »

Hi,

We are looking to sell our family business.
We don't want to draw attention to it too much as we don't want employees to know as it is not 100% yet.

We have no idea who to speak with in relation to this.
We are a small company in the country. We are worried if we just close it, there will be nothing for our parents to live on. It is a well established company.

How does one start to sell a business?

Talk to your accountant.

Bemused17

Bemused17 wrote: »

Hi,

We are looking to sell our family business.
We don't want to draw attention to it too much as we don't want employees to know as it is not 100% yet.

We have no idea who to speak with in relation to this.
We are a small company in the country. We are worried if we just close it, there will be nothing for our parents to live on. It is a well established company.

How does one start to sell a business?

What kind of business is it, how many employees, is there an attractive NET profit on the accounts last year?
If the business has legs, first step is put a valuation on it. Competitors might be the best people to sell it to, but you have to be careful about that depending on the business.

thegolfer

Bemused17 wrote: »

Hi,

We are looking to sell our family business.
We don't want to draw attention to it too much as we don't want employees to know as it is not 100% yet.

We have no idea who to speak with in relation to this.
We are a small company in the country. We are worried if we just close it, there will be nothing for our parents to live on. It is a well established company.

How does one start to sell a business?

Already noted, talk to your accountant.

Getting a business ready for sale, and also planning the exit from a tax and finance position in crucial. It could take 2 weeks or 3 years to get it over the line.

But you may only have one opportunity to do it, and get it right first time. Incorrect preparation could devalue the transaction.

PARlance

Just on the not wanting the employees to find out point. I appreciate your concern but we all know Ireland, no matter how "quietly" you go about selling it, word will get around.

It might be worth rethinking your approach. Rather than spooking your staff and having them all start a job hunt / leaving en masse (after hearing it from a 3rd party and possibly without you knowing until it's too late), it might be worth telling them that a sale in the distant future may be an option.

The messaging will be key, you may consider assuring them that you will seek conditions for them as part of the sale, you could offer some sort of bonus that will be paid out from the sale etc.

Staff are generally a key element to most businesses. Losing them could cause all sorts of problems and scupper a sale. You are also missing an opportunity by not telling them, a management buyout might be on the cards.

bmwguy

Would your staff collectively be interested in buying it?

A business plan by people that know the business would attract interest from lenders

EamonOSullivan

Bemused17 wrote: »

Hi,

We are looking to sell our family business.
We don't want to draw attention to it too much as we don't want employees to know as it is not 100% yet.

We have no idea who to speak with in relation to this.
We are a small company in the country. We are worried if we just close it, there will be nothing for our parents to live on. It is a well established company.

How does one start to sell a business?

There is a book called ''Built to Sell'' by John Warrilow. Not all of it is relevant, but you will find some of what he says interesting, notably about keeping staff informed.

People are not blind or simple. They will possibly have copped that the owners are retiring / close to retirement with no obvious successors. Another poster mentions that a management buy in is possible, so keep that possibility in mind.

Also if you are dealing to potential buyers, even if nobody else is talking to you, you always have the option of telling them that a management buy in is on the cards, thereby helping your negotiating position and price you can achieve.

searay

Bemused17 wrote: »

Hi,

We are looking to sell our family business.
We don't want to draw attention to it too much as we don't want employees to know as it is not 100% yet.

We have no idea who to speak with in relation to this.
We are a small company in the country. We are worried if we just close it, there will be nothing for our parents to live on. It is a well established company.

How does one start to sell a business?

I'd recommend you speak to an accountant who specialises in selling businesses who can assess how saleable the business is, guide you on value and set out a strategy for your parents. If you google "corporate finance accountant" you'll get some names. It doesn't have to be a big 4 firm as there are some small specialist firms.

While the business might seem small to you, it may well be saleable on it's own or a sale to a manager or key employee backed by your parents may help them realise value and preserve jobs.