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Start your free ExitMap® Assessment now. Click the ExitMap Icon to the right.
For business owners, this is The First Step to Understanding the Complexities of Preparing a Company for Transition.
Exit Options: Internal Sales and Transfers
Complete our
Free ExitMap® Assessment and receive your personal summary report to determine your level of readiness in the four key areas.
Confidential Online Consultation
Take advantage of a personal consultation.
You will be speak directly with an expert in the field, for free, for one hour. That may be all you need to set you on the right path!
We are experienced executives providing guidance, leadership, advice, and direction to support committed business owners in their exit strategy.
Simply, complete the form to the right.Why should you consider selling to employees? Because your company lives on with the culture you created. Because you can choose the value, not negotiate it. Because your employees aren’t comparing your company with other investments. Because you control the timing of your exit. Because it is probably the biggest financial transaction of your life.
Many businesses have competent employees and managers, so why do so few owners ever sell to them? Most will answer “Because they have no money!” What if you could sell the business to employees, maintain control until the day you leave, and walk away with 100% of the value in your pocket on your last day of work?
There are multiple strategies to consider when transferring a company to employees and with a minimum tax impact. We can prepare your company
for a successful transition to managers or employees. For a free consultation,
complete the form above or take our free ExitMap Assessment.
Selling to Employees: Is Your Exit Strategy Right in Front of You?If you have a company with reasonable cash flow, a talented management team and sufficient time, selling to employees is not only a realistic option; it may be the best way to get value from your business.
Over the next 20 years, expect 150,000 owner retirements per year. Intermediaries (brokers, private equity and M&A) account for only about 9,000 transactions a year.
That leaves a lot of folks looking for a way to cash out. Selling to employees is a process that lets you keep control until retirement. By structuring the sale correctly, you can leave with the proceeds in the bank, not in a promissory note.
The Parameters for a Successful Transfer to Employees - Cash Flow: Your company has to be earning more than just your paycheck.
- Management Team: You need at least one decision maker who does more than just go through the operational motions.
- Time Frame: Many business owners say, “I’ll think about exiting in five years.” That’s fine, if your plan is to retire in fifteen years. The longer you have to plan, the more lucrative an internal sale can be.
- Selling to employees requires legal agreements, specialized compensation plans and a willingness on the part of the owner to run the company transparently. The return is a team that is committed to the long term, highly motivated, and all on the same page when it comes to growing the business.
Selling to employees requires legal agreements, specialized compensation plans and a willingness on the part of the owner to run the company transparently. The return is a team that is committed to the long term, highly motivated, and all on the same page when it comes to growing the business.
Free Online AssessmentStart your free
ExitMap® Assessment now.
For business owners this is The First Step to Understanding the Complexities of Preparing a Company for Transition.
The ExitMap® Assessment questionnaire consists of 22 questions and produces a high quality 12-page summary report which will be emailed to you. The report ranks the overall preparedness of your company for transition and provides a breakdown of the four major categories of readiness; Finance, Planning, Profit/Revenue and Operations. If you are a business owner just starting to think about exit planning or if you just want to know where you and your company stand, this is your first step.
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Complimentary Consultation - Take advantage of a personal consultation.
You will be speaking to an expert in the field, for free, for one hour. We are experienced executives providing guidance, leadership, advice, and direction to support committed business owners in their exit or transition strategies.
Simply, complete the form above.