CHAPTER 26
Business Transfer: Introduction
Business transfer includes a spectrum of possibilities, from transferring the assets of a company to transferring partial or enterprise stock interests. Private business transfers take place in private capital markets. Because private markets are less visible than public markets, many observers do not recognize a structure in private markets. Yet a structure exists.
This chapter delineates the unique motives of public managers and private owners as well as the means to convert motives into action. The chapter also introduces the private business ownership transfer spectrum, which demonstrates the range of transfer alternatives available to private owners.
PUBLIC MANAGER AND OWNER MOTIVES
Motives that drive a public manager and private owner to transfer a business interest are unique to each party. Exhibit 26.1 compares public and private transfer motives. Understanding individual motives helps explain the behavior of the players.
The perspective of the players is the biggest difference between transfer motives of public manages and private owners. Public managers have an entity or corporate perspective, whereas private owners have personal transfer motives. Most private owners sell out because they are burned out. Public companies do not get tired. Private owners cannot easily replace themselves because they are so control-oriented. They also tend to wear so many hats that no one person can replace them. Public companies are organized ...
