Your Buyers Might Already Work for You

You check your email for what feels like the hundredth time today, but still no luck. Your business has been listed for some time now, and your legacy is on the line, but you just haven’t found the right buyer.

“I could stick this out a few more years if that’s what it takes,” you say aloud.

You look out at your office, and your employees are all working quietly and competently, without needing you to direct them. You don’t even remember the last time an employee came knocking with a question or issue.

Perusing the news, you stumble upon something that piques your interest.

You read about the recent passage of a new law called the Retire Through Ownership Act.

It covers employee stock ownership plans, or ESOPs, and how employees can become co-owners of the business.

You read on, and learn about how difficult the transaction’s been historically due to issues over how to value the business.

But with this act in place, it reduces the risk of legal exposure over valuation disagreements and leads to much quicker deals.

You now realize your buyer might be sitting in your very office.

Well, buyers, to be more accurate.

And then you remember something. You open your desk drawer, sift through a stack of business cards, and immediately start dialing.

The advisor picks up and asks one fair question.

“Could the business run without you?”

You look out at your office again. For once, you already know the answer.

Employees can only buy a business that runs without its owner, and many owners never test that until a buyer asks. If you’re not sure how yours would hold up, that’s the work we do. We document how your business actually runs and close the gaps before a sale or transition.