Our corporate attorneys believe in understanding seller motivation and a seller’s reasons for selling a business. By understanding seller motivation we are able to help find the best fit between the client and a prospective buyer. In some situations, clients are motivated by financial gain and the desire or need for liquidity. In these cases, the search to find a type of buyer hinges on the buyer’s ability to offer a highest price in cash. In other situations, however, clients may be motivated to sell a business because they wish to retire or do something new and pursue other interests. In these scenarios, clients may be retiring, dealing with health issues, involved in disputes among the other owners, or lacking a successor. These clients may not be motivated as much by the selling price than by the timing of the sale and the prospect of being relieved from the business’s responsibilities.
Other times, clients may decide to sell their businesses because they are looking for additional resources to grow and remain competitive. Additional resources could be capital, professional management, and more advanced technology. This may lead a client to sell a business to a strategic buyer who has the resources and familiarity with the business and industry.
In other situations, a client may run into financial or regulatory issues. This may lead the client to want to sell the business. In these scenarios, timing is more important than price. Another important consideration may be whether the seller wants to continue working for the buyer or if the seller wants to make sure key employees keep their jobs.
Sellers typically have pride in the business they are now selling but have worked hard to build over the years. The sale of a business involves the balancing of the seller’s personal interests and the need to find a buyer that will steer the business in the right direction. Our Charleston corporate lawyers guide our clients and help them balance these competing interests.