Who should I sell my business to?

There are generally three categories of people to consider transferring your business to.

First, you might consider transition the business to a family member. You might have a child that you want to take over the business.

Second, you might consider selling the business to an employee or group of employees. You might have some great employees who are getting involved in management and are already developing the relationships that are necessary to keep the business thriving after you’re no longer involved.

Third, you might consider selling to an outside buyer.

There are different considerations under each of those scenarios, but many of the same questions will arise no matter who you’re transferring the business to: What’s the value of the business? How can you reduce your tax on the sale? How can you minimize your risk once you’re no longer involved in the business? Will you stay on with the company and consult or be involved in some capacity after the sale?

While some of the questions may be the same under each scenario, the answers will vary depending on who you’re transferring the business to.