Service Type: Transfer Your Company

Employees (ESOP)

Good news: A company’s employees may become the buyer of the company in a structure named ESOP (Employee Stock Ownership Plan). Bad news: An ESOP is complicated and the purchase prices is often 5X-6X EBITDA. Motivation: An owner desires to transfer the company to employees, increase after-tax earnings, diversify personal assets, and still control key... Read more »

Family Members

Good news: It is easy to transfer a business to family members. Bad news: Family members typically do not have the cash necessary to buy a business. Consequently, they not only pay a lower multiple of EBITDA but they also create a contractual agreement to purchase the company. This contractual agreement is typically called an... Read more »

Management (MBO)

Good news: A company’s key management may become the company’s buyer. Bad news: Management usually does not have the cash to purchase a company for cash. The seller often creates a note secured by the stock of the company. Definition: A management buyout (MBO) occurs when an existing management  team purchases all or part of... Read more »