Mergers and Acquisitions
Team Ownership Transfer
Selling your business to your leadership team.
Given the value your leadership team adds to your business, and their importance to its future success, you may wonder if there is a way to continue to empower them while transitioning out of the business. An internal ownership transfer may achieve both of these goals at once. It is an exit strategy that allows you to depart while retaining and incentivizing your most valuable asset – your leadership team.
Selling your business to your team.
Let’s talk in more detail about transitioning ownership to your management team – or an internal sale. If this intention is outlined ahead of time, you will be set-up to dynamically move leadership from you to a successor. As with all transitions this process mustn’t be rushed, following the steps outlined in your exit roadmap will make the transition as smooth as possible.
Simply put, this is a way one, or more, of your leaders can acquire the business from you. To get more technical, these are types of management buyouts.
You may choose an internal sale to honor personal values, growth aspirations, or both.
The best way to execute a team transfer strategy is to develop a proposal for presentation to an individual or management team.
How taxing is this transfer journey?
If you are considering selling to your team you can explore several ways to transfer ownership and the tax implications of each.
Full or Partial Sale
Selling your business, as an asset, to your successor, may require a gains tax.
Stock Buy Back
You may be able to utilize a stock buy-back program and thus pay fewer capital gains.
Employee Stock Ownership Plan
If you would like to reward your entire organization with ownership, while motivating them for future success, an E.S.O.P. may be a good fit while providing tax savings.
Achieve a successful ownership transfer.
Your management team are those you’ve identified to best represent your company, who embrace the vision for your business. Not only have you implicitly trusted them with what’s been your livelihood and passion project, but you can revel in the fact that with their acumen, your business will reach new heights.
Contact Chris Andersen to discuss how we can help you transition ownership to your team.