Glossary

External Transfer

The sale of a business to someone who is not a family member of the owner or to someone who is not currently involved in the business.

See Also

Internal transfer.

Example

The sale of a business to a competitor or to someone else in the industry is considered an external transfer. The sale of a business to a family member or employee is considered an internal transfer.

Tips

External transfers almost always result in a higher value than internal transfers. Owners often only consider an internal transfer if they feel strong allegiance to employees, family members, or other insiders, or if the business cannot be sold to an outsider.

Related Resources

Business Exit Plan & Strategy Checklist | A Complete Guide

M&A Guide | Selling Your Business to Employees

Selling Your Business?

Work with an industry leader that gets you results.

We invested over a decade perfecting every step of the process. The result is a method proven to reduce your risk and maximize your price.

View Our Process Now