Search:

An article on Business and related topics

For additional information and special deals related to some of the items on this article, place your cursor over the double-underlined links. All information supplied by Kontera.com

Your Company: To Sell or Not to Sell

By: Ben Needles

Personal events involving the owners or senior management are what usually raise the question: is it time to sell the company. For the most part, the decision to sell is made for personal reasons. We discuss the most common reasons for a sale and goals of a sale below.

1) Fatigue: the owner-CEO wears several hats. After many years, some parts of the job remain enjoyable, but others are a burden. Many CEOs would like to stay active in the business, but want to devote energy only to the tasks that are in his or her sweet spot. One solution is to bring in a co-owner/senior manager who will one day assume complete control of the company.

2) Illness: both acute and chronic, progressive illness impact a CEOs motivation and ability.

3) Pressure from spouse: the owners or CEOs spouse may push the owner to move on to the next phase of life. Or a divorce may require liquidation of the owners holdings.

Pressure from heirs: Heirs, whether they intend to assume management of the firm or not, may be eager to enjoy a liquidity event. Heirs may have expressed disinterest in assuming management positions in the firm. Succession planning within the family may not be an option.

Pressure from other owners: often middle market companies have multiple owners. A number of them might like their stake liquidated, before or along with the majority owner.

4) Retirement planning: the owner may be ready to start retirement. Likewise, the non-owner CEO may be ready to retire, and the owner may not relish the job of hiring and training a replacement.

5) Business opportunity: owners may see other more lucrative business opportunities in other fields, and may need to liquidate their holding sot raise funding for the next company. Owners may wants capital to expand: owners may be interested in expanding the business, and are most interested in equity financing than in debt financing.

Through MidMEx, we offer sellers a range of buyers for each of these scenarios. Financial buyers, for example, will insist that senior management stay for a period of one - three years to help facilitate the transition. This is not an empty consulting role, but a meaningful management role. Other buyers will want to buy the company with the expectation that senior management will be largely replaced. Some buyers desire a minority position, others a majority, while others want 100% of the assets.

The critical factor in closing these transactions is for owners to be clear about their actual goals in selling or recapitalizing. Nothing frustrates buyers more completely than a seller who isnt sure what he or she actually wants. As the middle market becomes more efficient, more buyers will be interested in acquiring your company. Besides valuation, the most sensitive deal term will involve the future roles that current management might play. All the more reason to have this issue well thought about before listing the company with us for sale.

Copyright Midmex All Right Reserved
Please contact: editor at midmex dot com for permission to reproduce
Telephone: (877) MIDMEX1 or (877) 643-6391

Article Source: http://ezine-articles-planet.com

About the Author (text)

Dr. Mark Heitner is the founder of MidMEx (www.midmex.com). Many patients have been owners of mid-sized companies with a business for sale. MidMEx provides verified buyers and expert business appraisers, brokers and attorneys. Many resources are available to help owners sell the business.

pressure points for a foot massage

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Business Articles Via RSS!

Additional Articles From - Home | Business

Golden Tips To Earn Money - By : Ben Needles
Limited Risk Home Business Opportunities - By : Ben Needles
Opportunities - Finding Online Home Based Business Ideas - By : Ben Needles
E-mail Your Way to Effective Network Marketing - By : Ben Needles
Successful Marketing for Home Based Businesses - By : Ben Needles
Do You Have A Get Rich Quick Mentality Towards Home Business Ideas And Opportunities? - By : Ben Needles
HEALTH SECTOR CHALLENGES-00-1060 - By : 4Ps_Marketing
Hijack: Clean Your Computer - By : Pushkar Singh
Beginning in Business - By : Ben Needles
Do Not Be Afraid to Learn How to Earn Extra Internet Income - By : Ben Needles

Authors, Sign Up for a free account or learn more.

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Writers/Authors Submission Guidelines
Member Login
Submit Articles
Most Popular Articles

Publishers Article RSS Feeds
Terms of Service

Adsense Secrets 4 - Recurring Top 1% Commissions

Free Affiliate Training

Share This Page:

Site Information Link to Us
About Us
Site Blog
Contact Us
Privacy Policy
Multi Site Article Search
Links Directory

Sponsors from all over the web

Would you like your site listed here?

Is This Site Useful?
If you found this site useful, please consider buy the webmaster coffee and get a free link back to your site!

Thanks for your support!

Please Rate and Vote For Us: