Evaluating alternatives to selling (ESOPs, mergers, partial
sale)
Step back a minute. Should you really sell now? Are there
viable alternatives to selling? The answer may be yes, or no, but
the question is certainly worth asking.
We can help you look at various alternative to selling. For
example:
ESOPs (Employee Stock Owners
Programs) — ESOPs are tax advantages trusts that in essence
allow a business owner(s) to sell some or all of their company to
its employees. The selling owner can retain control of the
company as its manager. ESOPs are great for some companies but
not appropriate for all.
Employees buying in — Even if
an ESOP isn't for you, it is still possible to sell your company
to one or more of your employees. Often the problem here is that
the employee(s) don't have the cash to buyout their employer.
However, there may be favorable financing available for employees
to acquire the company they work for.
Investor — What about taking
on an investor or partner and growing the company instead of
selling it?
Is this a good time to sell? We hear this question
often from prospective sellers. While there isn't a simple Yes or
No answer, we can talk to you about the pros and cons of selling
now versus waiting.
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