The great escape

The altruistic view may be to try to help the younger colleague - perpetuating the owner-managed broker businesses. However, you only sell your business once and you need to ensure the proceeds are sufficient to keep you for the rest of your days.

If you want to sell to the next generation, you need to establish initially if he has the funds. He may have a wealthy relative or a legacy with which to fund the purchase. He may alternatively be hoping that you will offer some sort of shared equity and allow him to gradually buy the shares.

However, if he is not competent to run the business you might end up stepping back in to get back to where you would have been, had you accepted the other offer.

Also, if you have made insufficient preparation for regulation, your protege will be preoccupied with that rather than on business development and client retention.

It might be better to see the firm through regulation, which will put you in a stronger position come 2005, whichever exit option you choose.

Have your query answered by the experts tel - 020 7484 9808, fax - 020 7484 9989, email - richard.adams@incisivemedia.com.