How to sell your shares if you can’t find a buyer

Deciding to sell your business shares is a huge decision to make and requires a lot of consideration. Challenges can arise when you find that you are unable to find a suitable buyer that fits your expectations and valuation requirements. There are various reasons why you may want to sell your shares in a company such as health or personal issues, retirement, owner disagreements, or economic and financial difficulties. However, there are alternative options and avenues available to facilitate the sale of your company shares which we will be discussing in this article. 

There are various strategies available for you to explore if you are struggling to find the right buyer such as:

• Explore internal options – Consider offering your business shares to existing partners or shareholders within your company. These individuals already have an interest in and understanding of your business, making them potential candidates for purchasing your shares. By allowing existing stakeholders to expand their ownership, you can maintain continuity and ensure a smoother transition.
   
• Consider partial exits or joint ventures – If finding a buyer for the entirety of your business shares seems challenging, you might explore partial sales or joint ventures. Selling a portion of your shares can be an attractive option to investors interested in acquiring a stake in your business without taking on full ownership. Alternatively, a joint venture with another company can provide synergies and strategic opportunities while allowing you to retain partial ownership.
   
• Holding company buyout – We have developed a Holding Company Buyout solution, which enables funds to come from the company rather than personally and creates the facility to stage the buy-out payments, which greatly assists cashflow. This would allow key management personnel to take ownership of the shares, and pay the exiting shareholder out using company funds. This eliminates the need to find an external buyer due to the fact that the funds come from within the company.

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As outlined in this article there are various routes and options to go down. As always, we recommend speaking to your advisors on the best steps before making any changes. For more information on how we can help you and your business, or to discuss our holding company buyout solution please contact us via  info@oldfieldadvisory.com or call 02476673160 for support and advice. Let’s work together to grow and strengthen your business.

Please note: This article is provided for information only and was correct as at time of writing (30/05/23). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance.  No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.