Agree on what selling should accomplish before an offer puts those priorities to the test.
You may have a number in mind. A price that would make selling the business worth considering.
But if you have co-owners, have you talked about what each of you would be saying yes to? And if the business supports a family, have you discussed what life would look like after the sale?
One owner may be ready to leave. Another may want to keep working. A family member may assume the next generation will take over. Each person can believe they understand the plan without realizing that everyone is working toward a different outcome.
Those differences deserve attention before you are weighing a buyer’s offer, answering diligence requests, and making decisions against a deadline.
An offer cannot settle every question
This month’s acquisition announcements and fundraising news give owners concrete examples of buyers pursuing businesses and investors committing capital. On October 22, GEM announced $685 million in program commitments for its second independent-sponsor fund, which supports Lower Middle Market transactions. [1]
That is useful market context. It does not answer the personal questions behind a sale: Why now? What needs to change? Who wants to stay? What would make the outcome worthwhile?
A buyer can explain its plans and propose terms. Owners still need to understand their own priorities and where they differ.
The family conversation matters
Julius Baer and EY’s Family Barometer, published October 20, identified a lack of family alignment and emotional attachment as important obstacles to ownership transitions. The research surveyed more than 700 financial professionals advising ultra-high-net-worth families globally; it is not a survey of U.S. Lower Middle Market owners. [2]
For an owner considering a sale, it raises a useful question: have the people affected by this decision actually discussed what comes next?
Family input and ownership authority are different. Be clear about who has formal decision rights, whose perspective should be heard, and how concerns will reach the people responsible for the decision.
Start with these four conversations
What are we trying to accomplish
Ask each owner to explain why a sale is worth considering. Financial security, retirement, a change in responsibilities, or a different direction for the business can lead people toward different choices. Put those objectives in writing rather than assuming a shared definition of success.
What happens to our roles
Discuss whether each owner wants to leave, remain for a transition, or continue in an operating role. Include family members who work in the business where appropriate. A plan built around someone staying needs to reflect that person’s actual willingness to stay.
Which priorities are essential
Separate requirements from preferences. Perhaps an owner needs a defined departure date, while another places particular importance on the company’s identity or employees. Identify what needs careful discussion with prospective buyers and what flexibility exists. Do not assume every buyer will accept the same conditions.
How will we make decisions
Decide who coordinates the process, how owners receive information, and how disagreements will be addressed. Confirm formal approvals with the appropriate legal advisors. A clear communication process helps keep concerns from emerging only when a major decision is due.
Make room for different answers
Imagine two co-owners receiving the same offer. One sees the chance to retire and spend more time with family. The other sees an opportunity to keep running the business with additional resources. The price may appeal to both, while the proposed transition works for only one.
Neither perspective needs to be dismissed. Understanding the difference early gives the owners something specific to address when evaluating buyers and terms.
Preparation does not require perfect agreement on every detail. It requires an honest view of the decisions that remain open, who can resolve them, and whether the owners are ready to move forward together.
Bring those priorities into the sale process
At Graystone, our sector teams work to understand the business and the people behind the ownership decision. That understanding helps us identify relevant buyers and guide conversations around the owners’ objectives.
You do not need an offer in hand to begin that work. Start by asking what a sale should accomplish—and listening carefully when someone else’s answer differs from yours.
Considering a sale or planning ahead? Talk to a Graystone advisor about the conversations to have before going to market.
Your business. Your legacy. Your next chapter.
