
There may be affordability issues when a business owner is planning to transition their business to the next generation or to their management team. Quite often the...
There may be affordability issues when a business owner is planning to transition their business to the next generation or to their management team. Quite often the money to buy the business has to come from the business itself. How can this work for a family business?
Triple Affordability
Every business is unique, with its own financial and operational protocols. Every family is also different, with their own set of long-term goals and desires. This means that there is no one perfect solution for how a family business should be transitioned. There are some similarities, however, and we call one of these:
Triple Affordability
- The owner (seller) has created a great deal of value in the business and that value needs to be transferred to the owner
- The buyer has to have the liquidity to make these value payments to the seller (potentially from the business itself)
- The company has to remain sustainable during this payment period
Please watch this video as Lisa Horn and Matt Borchardt dig into a bit more detail around how to make a family transition affordable.

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