For business owners, selling the company to management can be overlooked as a viable owner exit strategy. However, in many cases selling the company to management can be more personally and financially rewarding than selling to another company or private equity firm.
The advantages of selling to management can include a higher company valuation, increased motivation and accountability for management, and the opportunity for the (selling) owner to stay involved with the business on their own terms. Our white paper titled “Creative Management Buyout Strategies” discusses these advantages and financing considerations for selling a company to management via a leveraged buyout or management buyout. This white paper and the strategies that are discussed are highly relevant to private companies with an estimated business value of between $5 and $50 million.