North Carolina business owners may be considering whether selling the family business is a wise choice. While it may qualify as a failure in some situations, there are situations in which selling may be a sign a of progress. The sale of the business can result in a financial boon for the founding family. They will have the financial resources to pursue goals, make the family a priority and pursue any other interests they may have.
It is not unusual for families to think about selling the business. People who have spent years investing time, money and themselves into the business may find it difficult to walk away. Making the choice to sell can result in guilt for not living up to their family’s expectations or not fulfilling the family legacy. Finding the right time at which to let go of the family business requires careful consideration. It is important to consider whether the family is still passionate about the business, if the business is the source of discord between family members and if it is a viable business can be supported by current circumstances.
Typical signs that the business may be the cause of destructive family dynamics include the plummeting of the economic value of the business due to family dissension and the permanent damage to family relationships due to disagreements about the business. Additional indications may include next-generation owners who are unable to work together and the filing of lawsuits by family shareholders as the go-to method for resolving disputes.
An attorney who practices business law may protect the interests and rights of clients during transactions related to selling a business. Services may include negotiating the terms of sale contracts and assisting with a valuation of the enterprise.