What are the driving factors and motivations behind why business owners sell their companies to companies vs. alternative options?
If you are a family-owned or operated business, odds are good you’re concerned about your people, your community, and the legacy you could affect with a change in ownership. These, “soft” values are important, for you, but not to many of the buyers you’ll meet in the selling experience.
There’s a simple shortcut to finding a buyer who shares many of your values. Start by looking for a family-owned holding company. You know that most family-run businesses are led with an innate sense of dedication and passion that can be hard to find in larger, publicly traded companies. “Human values are one of the key things that make us successful with family owned businesses,” says David Matz of ML Holdings Company. “As a family business ourselves, we understand that when legacy, loyal employees, and communities are involved, there is no such thing as ‘just a business deal.”
Whether you are looking to stay in the business or completely exit, it’s our experience that most sellers want to find a new owner that values their leadership teams, employees, customers, and any effects that a sale may have on their community.
“Selling to ML Holdings was a great experience. They were able to understand and appreciate the value of the brand we built. We felt we were leaving our business in the hands of people who truly cared about its continued success.”– Mark McCarty, Co-Owner of White Oak Equipment.
Here are three reasons to sell a family-owned business to a family owned business.
- Long Term Vision: One of the biggest advantages of selling your business to a family-run business is that they often have a long-term vision for the company. Because they play a much longer game, they are more likely to invest in the company, respect its culture, and retain both its leadership and employees to make a lasting impact on their local communities.
- Knowledge of Local Markets: Family-run businesses respect that you have a deep understanding of your local market competitors and customers. They can appreciate your roots in the community. Your knowledge is beneficial for the business, as it can help to ensure that the company is able to adapt to changing market conditions without disrupting the current customers.
- Responsibility to Employees: Family-run businesses run like …. family. There’s no denying that family owned and operated organizations feel a sense of responsibility to their employees and customers. This can be beneficial for you as a seller, as you can feel confident that the company and your people will be treated in a responsible and ethical manner.
Thinking Family First.
If you’re considering selling your business, looking to a family-owned buyer business can be a great starting point. Family-run businesses often have a strong sense of tradition and heritage, and they often view their business and your business as a legacy that they can pass onto future generations.
If you are reading this and wondering what it could mean for you, check out this page and see if your family-owned business lines up with the things our family is looking for.
Then, get off the web, give us a call, and let’s see if your family legacy can become part of ours.