When it comes to selling your business, you have a number of different options open to you. In fact, you might have more avenues open to you than you realized. In this post, we’re looking more closely at what these options are to help you make the right choice when selling your company.
The Different Types of Business Sale
There are several transactions that can take place when you are selling a company. We’re covering some of the most common below:
Management Buy-In or Buy-Out
This is a total transfer of management and ownership from one entity to another. A buy-in occurs when the buyer is from outside the organization, while a buy-out occurs when the buyer is already part of the organization but not the initial owner. Buy-ins and buy-outs can happen together if there is a coalition between internal team members and external entities.
Partial Sale
A partial sale is a general term referring to a part transfer of ownership. The original owner retains some of the company, and they may even remain in majority control.
Stock Sale
This is the purchase of stocks or shares in your business. It may constitute a partial sale, or it may be a complete sale. The percentage of the total shares purchased represents the size of the stake in the company.
Asset Sale
Selling a company’s assets may involve the sale of anything owned by the company — for example, equipment, licenses, patents, infrastructure, or other things with definable monetary value.
Acquisition
An acquisition sale involves selling your business to another organization, which then absorbs it into its own operational structure.
Merger
A merger is different from a traditional business sale in that it involves two companies coming together to form a new one.
What’s Best for You When Selling Your Business?
How do you choose the right option for your circumstances? The table below offers a few general scenarios of who can benefit from each type of business sale. Just bear in mind that this is a complex question, and the actual answer will depend on many different factors.
| Type of Business Sale | Suitable For |
| Management Buy-In or Buy-Out | Business owners looking for a total exit from their company and who can find a suitable buyer. |
| Partial Sale | Business owners looking to retain an interest in their company while raising additional capital from a sale. |
| Stock Sale | Business owners with organizations that are floated on the stock market and wish to release some or all of the share capital. |
| Asset Sale | Business owners with valuable assets who want to retain executive control after the sale. |
| Acquisition | Business owners who want to exit their company altogether or relinquish ownership to boost the organization’s available resources. |
| Merger | Business owners who want to retain some ownership, and wish to access greater operational resources at the expense of brand independence. |
Considering Selling Your Company? Reach Out Today
If you’re thinking of selling your business, we are here to help.
At The Batallan Group, we have a strong track record helping business owners get the best possible deal for their company. Reach out to our team to discover more.