sell

5 Signs That It's Time to Sell the Family Business | By: Terry Monroe

hello my name is rachel and welcome to

business bright insights youtube channel

today we will be talking about five

signs that it's time to sell the family

business

owning and operating a family business

is a big part of the american dream

the u.s census bureau reports that 90

percent of all north american business

enterprises are family owned

but along with realizing that dream

comes a bittersweet reality for some

family business owners

knowing when it's time to sell and that

can be a challenge as they wrestle with

deep emotional ties to the business and

various selling options

says terry monroe founder and president

of american business brokers and

advisers and author of hidden wealth

the secret to getting top dollar for

your business

monroe gives five signs that it's time

to sell the family business

sign number one your children are not

interested in the business

if you put your kids through college

thanks mainly to a profitable small

business chances are they have their

sights set on bigger goals when they

graduate

monroe says this realization can be

painful to a parent

there is nothing wrong with laying out

the facts regarding the opportunity that

the family business presents to them

but forcing the company on your children

will only result in resentment or poor

performance or both

sign number two your children are not

capable

not everyone has what it takes to run a

business monroe says

and when unqualified children are

allowed to take over the results can be

disastrous

this is where the saying thunder blunder

under

came from monroe says it means the first

generation made the business successful

the second generation flounded and

somehow kept the business together

and the third generation let the

business go under

sign number three ownership has become

too diluted

unless the company is always growing it

is hard to support a growing number of

owners

monroe says this is true whether they

work in the business or not

because the company can't keep paying

salaries or dividends or bonuses to

those not in the business or individuals

who are not working full-time there

and having too many owners often

disrupts the managing of the company

sign number four you receive an offer

you can't refuse

this is rare monroe says but when it

happens you should know it is a great

offer and take it

markets go up and markets go down he

says

regardless what kind of business you are

in you should always know what the

market value of your business is in your

industry

sign number five members of the next

generation don't like working together

perhaps all of your children are capable

but they can't seem to get along

if they are not getting along now monroe

says it will only be worse once they are

in business together

turning the business over to them will

impact your retirement plans

affect their lives and possibly destroy

the relationships they have with each

other

thank you for watching this video feel

free to check out the other videos

available in our channel

and don't forget to subscribe to our

channel and activate the bell icon to be

notified as soon as we release a new

[Music]

video

[Music]

until next time