Employee Sale

EMPLOYEE SALEExit Map Icon Small


M
ANY BUSINESSES HAVE COMPETENT EMPLOYEES, SO WHY DO SO FEW SELL TO
THEM?
MOST OWNERS WILL ANSWER, “BECAUSE THEY HAVE NO MONEY!”

What if there was a way that 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?

The ExitMap Management Transition Plan

It can be done, and there are many ways to do it while minimizing your taxes. The
ExitMap® looks at multiple strategies for transferring the business to employees,
including:

   • Stock appreciation rights and phantom equity
   • Employee Stock Ownership Plans (ESOP)
   • Tax-deductible stock bonuses and grants
   • SBA-financed management takeovers
   • Private equity financing of leveraged buy outs
   • Non-Qualified Deferred Compensation
   • Disproportionate partner distributions

Two or more of these strategies may be combined to maximize your after-tax proceeds while reducing the burden of the buyout on the company’s bottom line.

“I’d like to sell to my employees, but they have no money!” Most owners believe that a sale to employees requires self-financing, with the accompanying risk of default or repossession. They think the only alternative is a complex and expensive Employee Stock Ownership Plan (ESOP).

There are ways to transfer a business to employees so that the owner retains control until the day that he or she leaves with 100% of the purchase price in cash. It takes time, however, and many owners wait until it’s far too late to investigate their options.

Sales to employees can realize far higher prices and greater new proceeds to owners when they are structured correctly. We would be glad to lay out all of the options in a meeting at your offices or ours and discuss how your employees can become your successors.

The ExitMap Tag Line

THE PROCESS

We work closely with business owners using a well defined three-step approach that ...

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EMPLOYEE SALE

While there are many businesses with competent employees, few owners ever actually consider ...

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CASE STUDIES

We are the defenders of the owner's objectives and are judged by results, ...

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SUCCESSION

Family succession is a special subset of exit planning because family businesses have ...

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3RD PARTY SALE

If you do not have suitable successors among your family or employees, you ...

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FOR ADVISORS

To prepare a successful business transition requires a team that coordinates their efforts ...

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CONTACT US (210.615.1800) TO ARRANGE A CONFIDENTIAL APPOINTMENT, AND WE
WILL HELP YOU ASSESS YOUR READINESS TO BEGIN YOUR TRANSITION.

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