Which option is considered a con of the intergenerational transfer exit strategy?

Intergenerational transfer, which involves passing on a business to family members, can sometimes lead to a lower sale price compared to other exit strategies. This can occur for several reasons.

Firstly, family members may not have the same level of experience or expertise in running the business, which can affect the value perceived by external buyers or even the operational efficiency of the business itself. If the next generation is not fully prepared or lacks the necessary skills, it may hinder the business's growth potential, thereby influencing its market value downward.

Additionally, the emotional connection and family dynamics can also impact decision-making regarding the business's future, which might lead to less aggressive pricing strategies. When a business is passed to family members, it might not be marketed as aggressively, or the owners might prioritize keeping it in the family over maximizing financial outcomes, resulting in a lower sale price.

While other options represent potential downsides of intergenerational transfer, such as taxes or the length of the sale process, they don't directly relate to market valuations or pricing in the same way. Therefore, the issue of a lower sale price stands out as a pertinent con of this exit strategy.