It's not unusual for the child of a business owner to not have any interest in the family business. Often, they've seen the struggles, stress, and sleepless nights that are all too common for us business owners. They may have an entrepreneurial spirit but different passions, or they want to pursue a career that just isn't part of the family business. If this is the case, then the owner-parent must accept this reality and start creating an exit plan to sell the business to a third-party in order to extract maximum value for their hard work. Studies show that less than 20% of family businesses survive the second generation under the same company name and ownership.

So what can be done? The first step to any sale is a valuation. Even if a business owner is years away from wanting to sell we can perform a valuation to determine where the business is at right now and what can be done to better prepare it for a future sale. It does no good to wait for a child to 'come around.' Have that conversation with them now. Be candid and upfront and expect the same from them. We'd be happy to facilitate that conversation if you'd like. We can prepare a formal valuation and lay out the pros and cons of taking over the business. We can provide an unbiased analysis of your operation and its future earning potential so everyone has the right information to make an informed decision.

If we can help you discover what your business is worth and ease any fears about a transition, please reach out. As always, I'm looking forward to hearing from you soon!

Happy Friday,

Josh

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JOSH GRODE WOLTERS, MA, MBA, B​​TS

 Business Broker | M&A Advisor 

   · $23M closed transactions ·

Sioux Falls • Rapid City • Des Moines

2121 W 63rd Pl, Suite 100

Sioux Falls, SD 57108

j.grode@murphybusiness.com

(605) 951-9555