Internal and External Transfer Scenarios
When its finally time to transition your business, you will need to decide whether to transfer the business to someone inside your organization (Internal Transfer) or to someone outside your business (External Transfer).
There are four primary Transfer Scenarios to choose from. There are pros and cons to each so your decision will be based on which Transfer Scenario best accomplishes your Universal Goals and Objectives (UGOs).
Family
Transfers
An emotionally fulfilling but financially risky Transfer Scenario. Proper planning will remove the challenges between the owner and family successors.
Key Employee
Buy ins
An excellent way to transition the business, continue your legacy and reward those who helped build the business.
Co-Owner
Buy Outs
A Transfer Scenario between two or more co-owners which results in a mutually beneficial transfer of ownership.
Third Party Transactions
This Transfer Scenario is generally the fastest and most lucrative, however the most risky of all Scenarios. Proper planning will mitigate your risks.
