If you don’t think that a family transition is in your plans, perhaps a Management Buyout is worth considering.

A Management Buyout is a form of acquisition where existing employees and / or business partners acquire a large part of the company. This can often be appealing to professional Managers as it is a path to owning something they are familiar with and already involved in. Generally, this group will assume full control and use their expertise to grow the business.

When considering an MBO, it is important to evaluate the Management’s knowledge of the business ecosystem as well as the importance of little to no disruption to the day-to-day operations during the transition. While the transition time can be both compressed and elongated depending on the agreement, by going this route you can ensure your business remains in caring hands while avoiding the disruption of 3rd party investigation of facilities, records and confidential information.

If an owner is interested in pursuing the MBO route, the best first step, after setting the goals of the transition, is to speak with key Managers and gauge their interest. If the interest exists, work closely with them to develop a transition plan that works both for all implicated parties.