An employee buyout might provide a sensible alternative to satisfying a small business owner’s plan for selling their business.
In the event a family member or an outside, third party has little interest in purchasing the interest, an employee buyout might be an effective substitute. In some cases, an employee buyout can be the owner’s succession plan from the very beginning. The employees typically understand the business and the circumstances that led to the proposed buyout, which often makes negotiations easier.
Regardless of the situation, it is a practical option that should be considered when the owner has groomed a capable management team.
Read more about the advantages of employee buyouts here.
If you have questions on this, or any other tax or business related issue, please contact the experts at Zinner & Co.