An increasingly popular option for business owners

Selling To Your Employees Gear Images by Mergers and Acquisitions

Decision Associates M&A knows that selling your business to your employees may be a very viable option to consider.

In recent years, our mergers and acquisitions experts find that changes in the financing markets and related circumstances have made this option increasingly popular:

  • Banks have become more flexible in their approach to financing employee purchases.
  • The secondary financing market (primarily economic development agencies) are willing to take a larger position in joint cooperation with the banks.
  • Employee leaders in many companies have become better business people because owners have delegated more responsibility.
  • Employees know the business and understand the challenges of the industry
  • Owners more willing to sell their business to employees because there are fewer reasons to pause than other options, including:
    • Owners can negotiate a role for themselves
    • Owners are willing to hold part of the “paper” (sometimes all of it) and can negotiate re-capture terms and other conditions

Keep in mind that while employees have business knowledge and skills, they sometimes lack the entrepreneurial aptitude that ownership requires. That is why we recommend an assessment of employees who are potential buyers.

To learn more about selling your business to your employees contact Decision Associates M&A today.