Published: Journal of Personal Finance Vol. 4, Issue 3, November 2005

Alternatives for Transferring a Company

By Edward W. Towers, RFC and CBI

Merger and Acquisition activity is really heating up. The article titled “Small and Mid-market Activity Rose in ‘04” in the February 2005 issue of Inc. Magazine stated, “Both the volume of deals and their value rose sharply, according to Mergerstat, an M&A research firm based in Santa Monica, California.” Transferring or exiting a company is a major decision for the small or mid-market business owner. Frequently it is the biggest financial decision of his life and commonly at least three-fourths of the family’s net worth is tied up in the value of the family business. Preparing an exit plan is important. In developing an exit plan, the owner should consider the many alternatives for transferring the company.