Selling your business to employees comes with unique challenges
If you’ve decided you want to sell your business to your management, those you have identified as key employees, you can run into two buyout challenges. One is that your employees don’t have enough money to buy the company. The other is that they are not able to borrow in high enough quantities to cash you out.
Long-term installment options can be the solution
You don’t have to worry about your key employees buying your company in one transfer. A long-term installment buyout could be a much better solution for you. Either using an installment buyout of the owner’s money, someone else’s money, or a modified buyout (which is a combination of both), could help you successfully transfer your business to your key employees.
This white paper lays out your options as the owner to help facilitate the sale of your business to your employees. Learn about the differences between a long-term installment sale, a leveraged management buyout, an Employee Stock Ownership Plan (ESOP), and a modified buyout by downloading our guide!