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Private Capital Markets: Valuation, Capitalization, and Transfer of Private Business Interests + Website, 2nd Edition by Robert T. Slee

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CHAPTER 32

Outside Transfers: Retire

Many private company owner-managers transfer their business to an outsider prior to retirement. Often the owners want a lifestyle change. Even though the ultimate transfer occurs to an outsider, some of the transfer methods described in earlier chapters can be incorporated into the sale. For example, it is possible to use charitable trusts, private annuities, or grantor-retained annuity trusts as vehicles for the transfer to an outside buyer. This chapter discusses the proper timing for an outside transfer, the players that might assist with the transfer, the main approaches and marketing processes used to access the market, and the steps required to get to a satisfactory closing of the transaction.

Private business owners have a tendency to control most aspects of their companies. Controlling the transfer process is the last big challenge for an owner who probably has only one chance at the brass ring. Although there is an entire transfer industry at an owner's disposal, this process is too important to be blindly outsourced. The information presented in this chapter enables an owner to play an active part in the transfer.

In business, timing is often everything. This is especially true when a private business owner attempts to create an exit. Often it is difficult to transfer a private business. Most owners are surprised to find that it is easier to get into business than it is to get out. A multitude of variables must be aligned to enable ...

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