As small business owners get closer to retirement, they may want to sell their businesses to other parties. However, not every company available in North Carolina will find a buyer. Of course, there is a chance that a company could be acquired even if no one wants to buy it outright. For instance, a competitor may want to merge with a company or acquire a portion of it.
Those who own a small business may attract interest by selling it for less than its full market value. This is often referred to as a fire sale, and it can be a good way to liquidate the company or parts of the company that have the most value. In some cases, it’s possible to transfer a company to a successor either within or outside of the organization.
If no single successor is found, the company can start an Employee Stock Ownership Plan (ESOP). This allows employees to buy ownership stakes in the company and run it as their own. Those who want to create an ESOP should give themselves about one or two years to implement it. In the event that there is no one who wants to run or manage a business, it may be necessary to close it and sell off any assets that have monetary value.
The sale of business assets or the company itself may help a business owner walk away from his or her creation profitably. It may also allow the company to survive well into the future, which can help the founder to preserve his or her legacy. Those who are planning on selling or transferring a business may need an attorney’s assistance. Legal counsel could help a business owner create a succession plan or evaluate purchase offers.