A buyout offer on your business can be exciting. Sometimes, it means that your little start-up has attracted enough attention to be valuable — in which case, the buyout offer can be a lucrative opportunity that you don’t want to miss. In other cases, buyout offers can take you off guard (and may not be so welcome).
Here are some different types of buyouts that can be on the table:
These can happen because an employer wants to retire and long-term employees want to take over. They can also happen when the employees of a company think that the business has a future — but not under your leadership.
If you’ve made a significant impression with your ideas, concept, brand or products, you may find your larger competitors suddenly interested in taking over your operations. They may want to acquire your company as a subdivision of their own — hopefully, at a nice price.
Like an employee buyout, management buyouts involve people from within the company pooling their resources to purchase control of the business. Instead of involving all the employees, however, a management buyout is accomplished by a small subgroup of people.
Initial public offering
Initial public offerings, or IPOs, involve listing shares of the company for sale on the stock exchange. In this way, owners can actually sell off the company in part or as a whole.
If your planning on making a buyout offer on a company or are being presented with a buyout opportunity for your own, it’s smart to get experienced legal advice as soon as possible.