Need to get your client thinking about cashing-in without selling their business? Try these tips.
Take a moment to think about the client’s relationship with her children; and whether the children are truly ready and financially able to take on the business. If you think they may not be, tell your client. Your advice could avert a future business disaster.
If, in consultation with the client, you conclude the kids won’t be taking over, offer to do some research into the possibility of selling an equity stake to the company’s employees, or to an outside firm or venture capitalist.
While you’re at it, introduce the client to a couple of business valuators (convention practice is to use at least two to get an unbiased take). Doing this will help if the business has to be sold, and it’s also useful for share valuation in the event one or more children are capable of taking over the company and the firm has to be divided fairly amongst family members.