Most business transitions are accomplished by a sale to a third party.  The merger and acquisition is, however, one of several ways that an owner can transition a business.  The question is – what is the best fit for the owner?  There are other alternatives that should be considered, if applicable.  Does the owner have family who has worked in the business?  If so, the owner could accomplish both business planning and estate planning objectives by transferring ownership to the family member.  Are there key management personnel who are ready now or will be ready in the near future to take the helm of the business?  If so, an exit plan can be implemented by which the ownership is transitioned to management over time.  A sale to a third party might mean a greater purchase price and/or more secure source of funding for a purchase price to be paid over time.  On the other hand, a sale to a third party might also result in a shorter term of continuing employment and therefore a stream of income over a shorter period of time than one of the other alternatives discussed above.  There are many other factors to consider.  In any event, when deciding how to exit your business, just as with a work suit, the question is which alternative is the best fit.

If you have any questions about this or any other M&A issue,
please contact Glenn Solomon at gsolomon@offitkurman.com or 443-738-1522.

ABOUT GLENN D. SOLOMON

gsolomon@offitkurman.com | 443-738-1522

Glenn D. Solomon is a principal at Offit Kurman and has provided counsel to businesses and business owners for more than twenty-five years. He has extensive experience in the purchase and sale of businesses, structuring ownership agreements, and advising companies in financial distress.

ABOUT OFFIT KURMAN

Offit Kurman is one of the fastest-growing, full-service law firms in the mid-Atlantic region. With over 185 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our twelve offices serve individual and corporate clients along the I95 corridor in the Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York City regions. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.

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