When navigating the process of selling a family-owned business, the seller must understand that the power to choose the buyer ultimately lies with them. This critical decision-making authority allows the seller to seek out potential buyers who align with their financial and personal aspirations for their business’ future. One particularly appealing avenue is to consider selling to another family-owned and -operated business. This option can ensure the values and principles that have shaped the business are preserved, allowing it to thrive within the community it has served for so many years.
Emotions are critical when deciding to sell your family-owned business. Sentimental value and the impact on family members all play a role in determining how and when the time is right. But how do you best incorporate both strong sentiments and the critical economic aspects of such a transition? The simplest way is to hire a business consultant. They can relieve you of many burdens and help guide you along the best path for you and your family.
“It was an incredibly tough decision to sell our family business,” said Kevin Wrightington of Wrightington Gas Inc. in Kingston, Massachusetts. “My family received outstanding guidance from our business consultants, who helped us find the right buyer. We are very pleased to know that our employees, customers and community will be well taken care of with Spicer Propane, an exceptional family-owned business.”
M&A Consultation Is Essential
Emotions aside, the mergers and acquisitions (M&A) process itself can be incredibly challenging and difficult to navigate on your own. This is where the role of a business consultant becomes crucial. Their expertise lies in negotiation; they work diligently on behalf of the seller to secure the highest possible bid for the business. This process involves comprehensive market analysis, creating engaging presentations and interacting with potential buyers to generate interest and foster competition.
The goal is not only to maximize the offered price but also to enhance the overall value of the deal. This includes considering various aspects such as payment terms, deal structure and contingencies that may significantly impact the final sale.
“I am incredibly grateful for all the help and guidance I received,” said Paul Pagano, owner of Freedom Propane in Red Hook, New York. “Having a business consultant to guide me through the process was invaluable. I am very excited about choosing Combined Energy Services, a well-established, family-owned business, for the future of Freedom Propane, as well as for my employees and customers.”
Taking a Holistic Approach to M&A Offers
The terms and conditions of a sale are just as important as the purchase price. Sellers should know that there are many creative strategies to maximize their net proceeds, even if initial offers do not meet their expectations. For example, they can negotiate payment plans, performance-based incentives or other flexible arrangements to secure a fair deal while also achieving favorable tax implications. With so many options available, the guidance of a business broker can be an invaluable resource.
For many family business owners, preserving their legacy and reputation is equally important. After selling their business, many owners remain deeply connected to their local community, a place where they have built relationships and established a network over the years. Consequently, they often prefer to find a buyer who will continue operations and uphold the standards of integrity and respect they have set. This crucial connection ensures that employees and customers continue to receive the same level of care and commitment as the seller instilled in the business.
If family members express a desire to remain involved with the business after its sale, it is paramount to find a prospective buyer whose values resonate with theirs. In some cases, the primary owner might initially remain on board to facilitate a smooth transition, providing guidance and support to both the employees and the new leadership. Should they find satisfaction in the new company’s direction and its alignment with their values, it’s not uncommon for them to choose to stay on for an extended period, actively contributing to the business’ evolution.
Furthermore, prospective buyers must have a vision for growth. This encompasses investments in cutting-edge equipment, ongoing employee training and development, and initiatives that give back to the community that has supported them. A commitment to sustainability and corporate social responsibility can set a company apart and resonate with sellers who prioritize community impact.
Ultimately, the decision to sell a business is profound and often represents a singular opportunity in one’s professional life. Careful planning and strategic decision-making are essential to ensure a successful outcome. The proper representation can significantly influence the transaction, transforming what could be merely a good financial arrangement into a life-changing opportunity that honors the seller’s hard work, preserves their business legacy and sets a positive course for the future.
Don’t be afraid to seek assistance. This can be a valuable step and can lead to better outcomes and support.
For a look at the most recent M&A offerings from BPN, check out the M&A feature series in our December 2024 issue. For an overview of the M&A propane sector in 2025, take a look at this article from Cetane Associates' Barrett Conway.
