Transferring Your Company to Key Employees

Owners wishing to sell their businesses to management—specifically, key employees—face two unpleasant facts: Their employees have no money (most likely) and they cannot borrow any, at least not in sufficient quantities to cash out the owner. Thus, each transfer method described in this white paper uses either a long-term installment buyout of the owner or someone else’s money to complete the buyout. The last method discussed—the modified buyout—uses both an installment buyout and someone else’s money.