Alternative Business Exit Strategies: 4 Lessons from the Boating Industry

As private equity matures, more business owners seem to be asking themselves: “Do I really have to sell control of my business to achieve my financial, transition, and legacy goals?” Such thinking then leads to considering alternatives like internal buyouts, management buyouts (both ESOP and non-ESOP), taking dividends, or holding their businesses indefinitely.

In the long run, these alternatives may not be a bad financial decision. Consider Warren Buffett, who has said he never plans to sell select investments such as Coca-Cola or See’s Candies. This same philosophy is embraced by many family offices, which seek to hold companies indefinitely. Even my favorite team, the New Orleans Saints, was indirectly helped by a non-traditional buyout that launched owner Tom Benson into building his car dealer business.

The merits of a non-traditional exit aren’t limited to the long-term financial picture. There can also be significant emotional benefits. Consider this finding from the National Institute for Exit Planning, whose survey found that 76% of business owners “profoundly regretted” selling their business when asked a year later.

With interest in non-traditional buyouts growing, an interesting place to look for innovative ideas is the consumer boating industry. Over the past 30 years, several companies have executed innovative buyouts and exits that are worth examining. Here are four:

• MarineMax– MarineMax was launched through the consolidation of successful Sea Ray boat dealers. The original concept was presented by a private equity firm, but the owners ultimately decided to execute the strategy themselves, parting ways with the PE firm. Bill McGill became CEO of the consolidated company as it went public. Nearly 30 years later, MarineMax is the nation’s largest consumer boat dealer, and Bill’s son, William Brett McGill, now runs the business as CEO-creating an impressive example of effective generational leadership within a public company.
• Travis Boats– Like MarineMax, Travis Boats was built through the consolidation of U.S. boat dealers and repair shops, beginning in 1979 and acquiring businesses throughout the 1980s and 1990s. Funded by private equity, the company went public in 1996 but began to struggle financially in the early 2000s. A majority stake was sold to Tracker Marine  in 2004. During this process, many of the small boat dealers and repair shops that had previously been acquired bought their operations back from the parent company.
• Chris-Craft– At one point, Chris-Craft and its iconic brand were essentially a corporate orphan. The company was publicly traded under the Chris-Craft name, but most of its revenue and earnings came from its television-station operations rather than its boat business. A small private equity group approached Chris-Craft and negotiated a contingent agreement to acquire the boat business if the television stations were sold. Those stations were ultimately sold to Rupert Murdoch and became the foundation of what is now the Fox network. Chris-Craft then became a standalone company, allowing its brand and management team to refocus on the boat business.
• Grady-White– The newest example of a non-traditional exit is Grady-White. In July 2026, the company announced that it would be placed into a trust with no ability or intention to ever sell the business. The structure is intended to help provide employees with long-term stability and ensure that the company continues to adhere to its core principles. The owner reportedly felt blessed by the business, had all the personal wealth he needed, and believed this approach would be more personally fulfilling than selling to a strategic or private equity buyer-even though he had reportedly received an offer of approximately $400 million.

A Different Way to Think About Buyouts and Exits

Hopefully, these examples broaden the way business owners might think about exit options and encourage them to consider their own creative approaches while still meeting important transition, liquidity, and legacy goals.

To learn more about alternative business exit options and management buyouts, contact Us At Lantern Advisors