Mergers & Acquisitions
Mergers & Acquisitions
Resources: Glossary
Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.
External Transfer
Definition
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.