TYPES OF BUSINESS TRANSITIONS
Third Party Sale
This type of sale brings in an unrelated third party to buy the business. A third party sale could occur through an unsolicited offer, negotiated deal, or a controlled auction. Your Indiana SBDC advisor can help you secure a business valuation to ensure your business is fetching a fair price.
Family Succession
Transitioning a business to a family member takes honest and regular communication, a long lead-time, and a clear succession plan. Work with your SBDC advisor early to develop a strategy to benefit you and your business.
Management Buyout
A Management Buyout (MBO) is where an employee(s) of the business’s management team purchases the assets and operations of the business they already manage from the owner. The Indiana SBDC can work with both the owner and the employee to help develop a transition plan and identify financing opportunities.
Employee Sale
An ESOP (Employee Stock Ownership Plan) is a specific way to share business ownership with employees that can provide tax benefits to the company, to sellers of stock to an ESOP and to employees. This type of transition typically takes place over a long period of time. SBDC advisors can help think through if an ESOP will be a good fit for your business and connect you with ESOP specialists in Indiana.
