The sale of companies due to retirement
Requesting advice for the purchase and sale of companies due to retirement is very common in our sector, as it is one of the most common situations in the market.
On many occasions the time comes when the owner of a small or medium-sized business wants to retire without having anyone to “leave” the business to , without the possibility of a linked succession. There is no one interested in succeeding or the employer understands the sale to be more profitable or appropriate.
In our country, the sector that most abounds in purchase-sale of companies due to retirement, is in the hospitality sector, as it is characterized by its high level of turnover. It is a sector in which this type of transmission is constant.
A characteristic circumstance of company sales due to retirement is that, in principle, for the selling entrepreneur, the fact of stopping work is more important than the economic profitability of the operation.
This objective substantially infers both the seller and the buyer and the form or options for the materialization of the sale.
Selling a company for retirement
The seller is aware that it is a very attractive option for those who want to acquire an ongoing business.
In fact, many times the entrepreneur does not really want to retire, but rather to slow down or expand the company. So he looks for a working partner promoting a supposed retirement sale.
The seller is aware that this is an ad that will generate a lot of interest. However, this circumstance can sometimes prevent the businessman who is truly interested in selling and “forgetting” about the business from not obtaining the desired proposals within the expected period due to the fact that most of potential interested parties present themselves as working members.
Even so, it can be a goodpurchase option for those who do not have sufficient liquidity or financing.
It represents an opportunity to buy the company at low or even zero initial cost, reaching an agreement with the employer for whom the buyer offers his work and a percentage of the profit from the exploitation-.
This type of sales agreement is very common when the employer sells the company to his workers .
If you want to sell or buy a company under these conditions it is recommended that you have a team of experts to mediate and help you achieve a transmission in accordance with your interests and circumstances.
