20 Sep Navigating the Sale or Succession of a Family Business
When it comes to passing on or selling a family business, the process can be emotionally and financially complex. Whether it’s a long-established automotive repair center in Albuquerque or a custom cabinetry shop in Santa Fe, your business represents years of sweat equity and shared decisions — when to expand, when to pull back, how to adapt. It’s a legacy you’ve built together.
Whether you’re planning to keep the business in the family or transition it to a new owner, careful planning is key. Below are considerations to help ensure a smooth process and protect what you’ve built.
Prioritize Employee Retention
Long-term employees and family members are often the backbone of a business’s success. Retaining them through a transition can enhance buyer confidence and preserve company culture. It can make the business far more attractive to the right buyer. The key is to balance financial goals with the human capital that keeps the business thriving.
Ensure Your Advisors Are Experienced in Deals
Many family businesses rely on long-time accountants or attorneys who may not specialize in business transfers. For a smooth transaction, it’s essential to have professionals experienced in M&A and business sales. An intermediary like Michael Greene of Sam Goldenberg & Associates brings deep expertise in deal structure, negotiation, and communication. His experience navigating complex deals helps to ensure that your interests are protected from listing to closing.
Understand the New Management
If family members will remain with the business after the sale, it’s wise to establish clear expectations with new ownership early on. Defining roles, compensation, and reporting structures helps prevent misunderstandings. Most importantly, it ensures everyone knows where they stand as the business evolves under new leadership and helps to craft a common vision for the future.
Get a Consensus from Your Family
Every family member involved, whether active in the business or holding a financial stake, should have a voice in the decision. Misalignment on price or deal terms can slow progress or derail a transaction entirely. Clear communication and a designated decision-maker help keep things moving and reduce internal stress during negotiations.
Hire an Experienced Business Broker and Advisor
Many sellers naturally turn first to their accountant or attorney for guidance, but those professionals typically focus on narrow aspects of the process — taxes or legal protection — rather than the entire transaction.
A business broker bridges both worlds. We translate buyer concerns into actionable feedback for the seller, and present the seller’s business in a way that resonates with qualified buyers and lenders. Accountants are invaluable when it comes to tax strategy, and attorneys are critical for final contracts — but neither is trained to value a business accurately, manage negotiations, or guide both sides toward a successful closing.
That’s where Sam Goldenberg & Associates excels. We coordinate the process from valuation to closing, ensuring the sale reflects the business’s true worth and the legacy behind it.
Begin Thinking About Your Family Succession Plan
According to PwC’s 2024 Family Business Survey, only about 40% of family businesses have a succession plan, and just 20% have a formal written one. Meanwhile, a third report concerns about leadership readiness in the next generation. These findings underscore the importance of planning early — not only for continuity, but to give the next generation the best chance to succeed..
If this is something that you and your family are ready to explore — or even just want to better understand your options — we invite you to meet with Carlos Duno, Sam Goldenberg & Associates’ certified Exit Planner. Carlos has guided countless New Mexico families and seasoned entrepreneurs through the process of preparing for transition, helping them protect their legacy and be rewarded for their years of hard work and dedication.
Adapted by Sam Goldenberg and Associates. This post The post Navigating the Sale or Succession of a Family Business appeared first on Deal Studio.
Source: PwC, 2024 Family Business Survey. For more information, visit https://www.pwc.com/gx/en/services/family-business/family-business-survey.html.
