Business ownership changes for different reasons, often within the constraints of an exit plan, but sometimes under less than ideal circumstances. You might have been part of a succession plan or simply part of a catch-all in a family member’s will, but what do you do when you inherit a business you aren’t equipped or have a desire to run? From dealing with the details and stress of sudden final arrangements, you now also have the issue of a business, customers, and employees caught with an uncertain future.
Running The Business In The Short Term
In the midst of the chaos, you may want nothing more than to rid yourself of the business, however that’s not always easy, and now you have other individuals and customers depending on you to make wise decisions to keep the gears turning. Business ownership is more than a 9-5, punch the clock, hang up your hat in the evenings venture. It often requires late nights, early mornings, and a wide range of skillsets to keep a business operating well. While selling your business is the goal, such a plan takes time. As you prepare for the sale, seek out counsel from qualified business advisors such as management consultants and a certified business broker in your area to help sort through the company’s financials to assess the business’ readiness for sale.
Hire A Manager
If you find yourself inheriting a business suddenly, it’s likely you already have other responsibilities taking the bulk of your time. Consider hiring on a business manager to keep the business humming. In the case of a well-established company, this individual may be hired from within, but in the absence of the necessary talent in-house, ask for an outsourced COO referral from your business broker.
Prepare To Sell Your Business
As we mentioned earlier, selling your business may not happen overnight, and it may take a bit of time to sort through company assets and financials to gain a clear picture of the company’s performance, opportunity, and estimate a listing price. While you may want to move the company quickly, follow the guidance of your business broker to ensure a successful deal with a prepared buyer is formed, otherwise it may fall through or worse, damage the company’s reputation.
While a company is often the greatest asset an individual may own, inheriting said asset may be viewed as a white elephant. However, working with a qualified business broker can help bring peace and stability to an otherwise stressful situation. As one of the Midwest’s premier merger and acquisitions firms, we’re equipped to handle even the most complex private business transactions. Schedule your complimentary confidential consultation today.