Transferring Your Company to Key Employees

Owners wishing to sell their businesses to management, (key employees), face one unpleasant fact: their employees have no money.

Nor can they borrow any—at least not in sufficient quantity to cash out the owner. As a result, each transfer method described in this White Paper uses either a long-term installment buyout of the owner or uses someone else’s money to affect the buyout. The last method discussed—the Modified Buyout— uses both an installment buyout and someone else’s money.