Sale within the family

The sale of a business to family members is one of the most common and most obvious succession scenarios. However this form of change of ownership hides the greatest number of dangers. A transfer of ownership within the family means realising a transaction whereby not just the seller and the buyer need to feel good about the transaction, but the interests of other family members are also not underestimated.

The valuation is a vitally important aspect of a sale within the family. Because this needs to be done in such a way that there is no room for discussion afterwards. It is also important to take time to reflect on valuation versus market price. After all the deal must also be capable of being justified on rational grounds afterwards.