5 Reasons to Sell Your Business to Your Employees

Are you ready to sell your business? Your employees might be the ideal potential buyers. Employee stock ownership programs (ESOP) and other forms of employee stock ownership are a smart idea to sell your business to people who really care about and want to protect and to grow the company.

5 Reasons to Sell Your Business to Your Employees
  • Business Continuity: Trusted employees are most likely to maintain the existing company culture and operate the company consistent with your values. https://www.inc.com/bob-house/why-selling-your-business-to-an-employee-may-be-your-best-bet.html

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  • Mentor the Next Generation: When you spend years with green advisors you get a chance to help them learn what you know works. https://www.forbes.com/sites/joshpatrick/2015/07/26/5-reasons-you-need-to-sell-your-services-company-to-your-employees/#1b7da5d8681a

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  • You Can Take Time With the Transition: Make sure the employees who think they can buy the business can handle it once they have the reins. https://www.entrepreneur.com/article/306067

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  • Ongoing Cash: Compared to sales to third parties selling a business to key employees takes more time. During the buy-in period, owners continue to receive their salaries and all the perks of ownership. https://smallbusinesssuccessionplanning.com/selling-your-business-to-employees-washington-dc

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  • Protect Employment and Retirement Benefits to Loyal Employees: Employees get the benefit of owning the shares. When the employees retire, they get a payment based on what the shares are worth. https://financiallysimple.com/should-you-sell-your-business-to-employees-pros-and-cons-of-esops

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This checklist was created by anthonycaliendo

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