Before Selling A Middle Market Business: Five Lessons For Owners
August 06, 2021
The kids had no interest in continuing to run the company.
That was the crux of the challenge facing the owners of an industrial services firm that engaged our law firm for assistance with a sale transaction and it is not an uncommon circumstance.
The company, based in the Mid-Atlantic region, was founded by a husband and wife who had invested many years in growing the business, and had transferred some leadership responsibilities to their children. But as “Mom and Dad” began to think about the next phase of the business, the family realized that their respective interests were best served by exploring a sale of the business.
Ultimately, the family accepted an offer from a strategic buyer. The new owner planned to consolidate the company into its existing operations and following a brief transition, the family would no longer be involved in the business. This suited the family well as they had concerns that a financial buyer (e.g., a private equity firm) may well have wanted some family members to stay involved in the business, post-closing.
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