What do you do if you cannot find a successor or a buyer for your family business? Sell to your skilled and experienced workforce! “It’s an answer you may have been looking for.”
57% of family businesses have acknowledged that they would have no choice but to cease trading within one year of a severe illness or death of a current owner.
Only 42% have planned for the family business succession.
Family Business Succession Options
Model 1. “Recycling dad” but what if no one is willing or able to step into dad’s shoes?
Model 2. Next Generation ownership and management
Model 3. Have active next-generation owners with a non-family management team
Model 4. Trade Sale or find a private equity investor
Model 5. Management Buyout – Then the question arises; Can the business then sustain another MBO when the managers/owners are ready to retire?
Model 6. Employee Ownership
6a. Create some liquidy with a minority employee ownership stake. This unlocks … Read more