The Indiana SBDC is available at every step of your entrepreneurial journey. If you are interested in selling your business, meet with an advisor early on to make the process as easy and profitable as possible.
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.
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.
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.
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.
Don’t wait until you are ready to sell to develop an exit strategy. A good exit strategy can take months or even years to execute. Work with your Indiana SBDC advisor now to develop a plan that works for you and your business.
A potential buyer will request financial documents like financial statements, balance sheets, income statements, and tax returns for due diligence. Your Indiana SBDC advisor can help ensure your financial documents are ready.
Your business valuation can provide a realistic estimate of what your business is worth. The Indiana SBDC has valuation specialists available throughout the state to provide no or low-cost business valuations.