There are many business owners in the Portland area. These owners have spent years of their lives building up their business and gaining a good reputation. The hard work that goes into owning a business is incredible and it is understandable that business owners want their successor to treat their business as well as they have.
Transferring a business to a new owner is a critical decision for a business owner. There are five common ways that a business owner can transfer their business upon their retirement, death, or disability. There are several ways a business owner can make this transition.
- Co-Owner: A business owner can sell out their shares in the business to another owner who is currently in the business.
- Key Employee: A business owner can sell the busines to a key employee. Typically, this employee has worked with the owner for many years and knows the ins and outs of how to run the business and the owner’s values and expectations.
- Heir: Many times, a business is passed to another family member to continue the family business for another generation.
- Outside Party: A business owner may find that someone else outside the organization is interested in the business and would like to purchase it.
- Company: Selling the business to a company may be a good idea if there are multiple owners of the business.
A Portland area business owner has many times spent his whole life building his business to be successful for years to come. It is important for a business owner to have a succession plan so that he can be ensured that his business will continue for many decades to come. A legal professional who specializes in business law can make sure their client has a viable business continuation plan. They know that a business succession plan can minimize conflict, stress, and anxiety among all of those involved.