What to know when selling a business

For many, selling a business to an outside buyer offers the potential for a clean break and the freedom to focus on what comes next. Others may choose to stay involved after a transaction, using the sale to access capital for growth, expansion or other long-term objectives. Whatever the situation, a successful sale can open doors to new opportunities.

Too often, however, business owners delay planning for a future sale until their options have become more limited. According to Huntington Bank’s 2026 Beyond Business Report, only 45% of businesses surveyed reported having a formal succession or exit plan in place¹. The report also found that more than half of business owners anticipate a change in ownership by 2030, yet many have gone no further than informal conversations¹.

When planning is delayed, owners may have fewer options and less flexibility when it comes time to transition. A clear strategy can help support a successful sale and a smoother ownership transition while aligning with personal, family and business goals.

Finding potential buyers

Once you’ve decided to sell, you’ll find there are several types of potential buyers:

• A strategic buyer who wants to get into your business or to establish a local presence and who sees synergies with your company.
• A financial buyer, attracted by your business’s profitability.
• The private equity market which may provide an investment that lets you exit completely or just take some cash out of the business.
• Selling to your employees through an employee stock ownership plan (ESOP).
• You might consider an initial public offering if the company is large enough.

Often, your personal motivations for a sale can directly influence how it’s structured, and what kind of buyer or partner you consider.

One owner I worked with sought diversification, not wanting all of his assets concentrated in the business. But he also wanted to continue to lead the company for several years and help it expand. His goals dictated how he would proceed. He partnered with a private equity firm that provided four injections of capital, accelerating the company’s growth while increasing the wealth on the owner’s personal balance sheet and paving the way for his eventual departure.

Another owner’s primary concern was her employees. She felt they had put their blood, sweat and tears into the company, and she wanted to make sure they were taken care of. She sold shares of the business to the workers through an ESOP, while also making sure there would be a strong management team in place during the transition. This approach, which can be attractive due to potential tax advantages upon sale when properly structured and certain conditions are met, achieved her goal of supporting the employees and the community.

In other cases, maximizing a company’s value is paramount. The owners may be more emotionally detached, having built the business specifically to sell it to fund post-business lifestyles. The choices you make depend on your ultimate goals.

Preparing for a sale

Preparing a business for sale often means addressing the factors that may influence its value and appeal to potential buyers. That includes making sure financial statements are organized and easy for a buyer to understand.

This stage also requires an objective look at how the business should be positioned and what potential buyers will want to understand. That may include the company’s governance, ownership structure, financial performance and ability to operate without the current owner.

But also ask yourself where the company’s real value is. Is it in the management team? The sales force? The product? And how crucial is the owner to the company’s operation?

Family considerations when selling a business

This is also the time to address family members’ interests. Family members who work in the business may have very different expectations than those who do not. Written agreements and clear communication can help reduce uncertainty and align expectations before a transaction moves forward.

In some situations, owners may choose to transfer shares or other assets to family members before a sale. Strategies involving trusts or other ownership transfer techniques often require advance planning and should typically be evaluated well before a letter of intent is signed.

Assembling a team

The most important step in setting a sale in motion is to gather the appropriate team of advisors, who for most owners are individuals they’ve worked with for years and who are privy to the financial side of the business and the personal aspects:

• Certified public accountant
• Corporate attorney
• An investment banker for mergers, acquisitions or divestitures
• A tax attorney and a trust and estate attorney may be needed if shares of the company will be distributed to family members before a transaction.

You’ll also need a valuation consultant who can provide a detailed analysis of the business and help assess how it compares to local, regional and national competitors.

Keep in mind that the objective may not always be to achieve the highest possible sale price. Depending on a family’s goals and timeline, owners may prioritize wealth transfer, family succession or tax efficiency alongside valuation considerations. In many cases, the most successful transactions are those that align personal and business goals while addressing tax and legacy planning considerations.

A wealth advisor can often serve as the key person on this team and can make the intricacies of a very complex process flow more smoothly.

Selling a business often involves decisions about valuation, taxes, family considerations and long-term financial goals. A Huntington wealth advisor can help you evaluate your options and coordinate your business-transition strategy with your broader financial plan.