Want to buy out parents

Hey folks i have been invovled in the family business for roughly 40 years. My parents run
are still invovled but i would like to buy them out. My question is how do i broach the subject with out hurting their feelings

I also bought out my parents. I brought up the subject by talking about retirement.

Put them in the “home” :stuck_out_tongue:

I know with my family business it was kind of like talking about religion and politics…you just did not do it unless you were ready for a fight! I think it was for the best that we sold it all a few years back since I believe having my father retire would have meant 6’ under. He just could not help himself too not be doing something 80 hours a week. He built the company on the people and even after selling he would come around and keep his card game going in the cafeteria at lunch or dinner breaks. It was hard to break ties with what you have known for so long.

I think you need to talk about this in a careful way too say the least. You say you have been involved for 40 years…and I am guessing your parents longer. This is their way of life as they know it. I would bring it up slowly and try to get them more in the mindset of retirement. Get them out of the restaurant more and doing things they enjoy. Make a plan and present it more as a business partner would than a son. Show them that you are able to handle the transition and reasure them by letting them know that they are still just a phone call away if you needed help with any bumps in the transition of things. At least for the initial period…make them still feel as though they are needed and that you welcome that continued assistance. As time goes on, hopefully they will fill their newly found freetime with more of life’s enjoyments and less of the family business. Best of luck.

What if they dont really want to retire. My folks have been in the business for 50 years.
I have 2 other brothers and 1 sister but they are not invovled in the pizza business. I would hate to have something happen to my parents and then have to buy my siblings out, i would much rather buy my parents out. Running it with my brothers and sister is out of the question. Thanks Guys

I’m just thinking outloud here, but what if you told your parents that you have been thinking about your need to build a nestegg for retirement, and you have considered maybe opening a new pizza place in a nearby town. Owning your own business would provide for some ultimate retirement security, and you would like to ask for their input into your thinking about it. Their thought process might possibly stimulate their thought process about maybe solving your situation by selling their place to you…and possibly even continuing on as employees, or just retiring themselves with a guaranteed monthly income flowing to them from your purchase payments. At least the conversation might lead to THEM bringing up the subject of what they might want to ultimately do with the business.

Another possibility might be to ask them to consider adding you as a partner, and then include a buy/sell clause in the partnership agreement, with a “key person” insurance policy (term life) purchased to provide for the buyout in the event of the death of a partner. The business could even pay the premiums for the insurance policy.

But whatever you do, try to be sensitive to the fact that they have nursed this business from infancy, and it has provided them with both a living and a sense of pride. It may not be the best business in the world, but it’s theirs. Sorry for the preaching. Good luck.

Parents selling to the kids…
Looking at this from a different angle, would your parents get more benefit from the family business continueing in the family, or with a little more cash in the bank? I do not know your parent or you, but I know if I were to sell to one of my sons I would be much more reasonable on pricing and terms than if I were selling to a person that I never met before and would never see again while I was beating the crap out of a little white ball with an iron stick and sipping drinks with umbrellas in them. I’m just sayin…

Rick

You might be able to buy them out but they will always think they own the place…Unless you can get them to retire 1,000s of miles away…

SO very true Royce! In my previous business I bought out my FIL after working for him for over 20 years. We were close to 10 years past the date HE selected for the buy out and it took some very “serious” discussions on my part to finally get the deal signed and done. But, yup…for at least the next 3 years he stopped in everyday to check on me, though in fact I had run the everyday operations for 15 years!

For the OP, there is zero harm in opening the discussion with the folks…“hey, just wondered what your plans are down the road…I love working here with you, but I’m XX years old and it’s time for me to get something going of my own”. It doesn’t have to be stressful, doesn’t have to lead to a huge riff…you’re just needing to take care of YOUR family now.

Keep us posted though…

Here here.

If I were you, I’d just wait til they’re “gone”, and deal with the siblings later. It’s there, and theirs. Enjoy the business ,and the parents, together, while you can. The business, and the parents, won’t be around forever.

Amelmor i do enjoy the business and having my parents around i just want them to be able to enjoy themselves while they can still get around. I dont want to chase them away, But its like deaconvolker and piedad said i need to start looking out for me and my family im pushing 50 heck i would like to retire by 65