{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Building and Protecting Your Business Worth","title":"Internal vs. External Sale: Choosing the Right Path to Exit Your Business","html":"","width":"100%","height":180,"duration":596,"description":"\nInternal vs. External Sale: Choosing the Right Path to Exit Your Business\nEvery business owner will eventually exit their business. The real question is how that exit will happen.\n\nIn this episode, we examine the two primary paths for selling a business: an internal sale to a family member, management team, partner, or employees, and an external sale to a strategic buyer, private equity group, financial buyer, or outside individual.\n\nWe explore the major differences between the two approaches—including business value, purchase price, cash at closing, financing, timing, confidentiality, risk, and legacy. Internal sales may provide greater continuity and preserve the culture of the business, but they can involve lower purchase prices and payments spread over time. External sales may provide a higher price and more cash at closing, but they also involve due diligence, outside buyers, and potentially significant changes to the business.\n\nOne of the most important issues discussed is business value. Before deciding how to exit, an owner needs to understand what the business is truly worth and the difference between what an internal buyer may be able to pay and what an external buyer might offer.\nThe episode also provides important questions every owner should consider:\nDo you want the business to remain in the family or with the existing management team?\nDo you need maximum cash at closing?\nIs there a qualified internal buyer who can realistically finance the purchase?\nHow much risk are you willing to accept by financing the sale?\nIs maximizing price more important than preserving your legacy?\nHow much time do you have to prepare for your exit?\nThe key takeaway is simple: don’t wait until a buyer appears to decide how you want to leave your business.\n\nThrough the GWT Planning System®—Growth, Wealth, and Transition—business owners can work toward building transferable value and preparing for either an internal or external sale. The objective is to be in a position...","thumbnail_url":"https://img.transistorcdn.com/2udrpuhvhfjVpaogMnsg1xEKmue2CpuBedVH7VcO2d8/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzE2MDkxLzE2MDQ5/NTg0ODAtYXJ0d29y/ay5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}