How To Sell a Family Business 

Selling your business is one of the biggest decisions a family will ever make. Whether the company has been around for multiple generations or just a few years, selling a family-owned business involves a unique mix of financial complexity, emotional weight, and logistical challenges. 

Knowing how to sell a family business the right way can mean the difference between walking away with a life-changing outcome and leaving money on the table.

When Is the Right Time To Sell Your Business in Utah?

Families choose to step away from the business they (or their ancestors) worked hard to build for many reasons. 

Retirement is one of the most common, especially when the next generation isn’t interested in taking over. Burnout, health changes, and a desire to pursue other goals also push owners toward an exit. Other times, the market is strong, and owners want to capitalize on high demand.

Changes in the industry can also drive the decision to sell a family business. Whatever the reason, the decision to sell your business in Utah should be made with clear eyes, not out of desperation. If revenue is strong, operations are running smoothly, and the books look clean, that’s often the best time to go to market. Waiting until things get hard usually means settling for a lower price.

Build a Smart Exit Strategy

An exit strategy for a family-run business should begin long before the business goes on the market. Ideally, planning starts one to three years in advance. Transitioning ownership of a family business requires honest conversations among family members to establish clear expectations, prevent misunderstandings, and help preserve relationships.

Exit strategies go beyond simply finding a buyer. They include considering tax implications, deal structure, employee transitions, and the role (if any) the current owner will play after the sale. 

Starting early also ensures you have time to address critical issues, such as improving financial performance, resolving outstanding issues, and strengthening operations. Involve a CPA and a business attorney early in the process. The structure of a sale (asset sale vs. stock sale, for example) can significantly impact how much money ends up in the owner’s pocket after taxes.

Get the Business Ready for Sale

Preparing a family company for sale involves more than cleaning and updating equipment. Buyers want proof of steady revenue, organized records, and strong leadership.

Important preparation steps include:

• Updating financial statements and tax returns
• Documenting systems and processes
• Reviewing contracts with vendors and customers
• Identifying key employees who will stay after the sale
• Resolving any legal or operational issues

Professional business valuations are also critical. A realistic asking price based on earnings, assets, and market conditions attracts serious buyers. One of the biggest mistakes sellers make when selling a family company is pricing based on emotion rather than data. 

Family business succession planning often gets tangled up in sentimental value, but buyers only care about the numbers. Getting a formal valuation early provides a realistic baseline for negotiations, helping avoid the frustration of overpricing a listing only to have it sit on the market for months with no offers.

Negotiate and Close With Confidence

Offers can vary widely in structure. Some buyers pay in full at closing. Others may propose installment payments, earn-outs, or seller financing.

Knowing how to sell a family business requires understanding the terms of the sale, not just the price. Legal and financial advisors should review all documents before signing. Transition agreements may also specify how long the current owner will remain involved after the sale.

Successfully transitioning ownership of a family business requires coordination between attorneys, accountants, lenders, and brokers. With the right team, the closing process can move efficiently and with minimal stress.

Work With Professionals Who Know the Market

Selling a family-owned business on your own is possible, but it is rarely the best path. The process involves financial, legal, and emotional layers that can be difficult to manage on one’s own.

That’s where working with a broker who knows how to sell a family business and be your guide to selling your business makes all the difference. The right broker will know how to market the business discreetly, qualify buyers before they see sensitive information, and guide the deal through due diligence without letting it fall apart. 

Ready for the Next Step?

If the time has come to explore options for selling your company, and you’re thinking about choosing a broker, contact Business Brokers of America at (801) 935-8919. We know how to sell a family business, providing thoughtful planning and expert help so you move forward confidently while honoring everything that made the business special.