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Let’s TalkInternal Transfer
A sale of a business to an insider, such as a family member, an employee, or partner.
See Also
Buy-sell agreement, external transfer, ESOP
Example
The sale of a business to a competitor or someone not involved in the business 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 a strong allegiance to employees, family members, or other insiders, or if the business cannot be sold to an outsider.
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