Ownership Transition Options
If you are a successful entrepreneur and particularly if you are nearing retirement you may be facing some common decisions: How can you diversify your wealth by creating cash for the business you have built? And, how can you create an effective succession plan for your enterprise?
As you know, ownership transition choices include:
- Selling the company to a competitor or private-equity firm
- Merging with another company
- Going public
- Selling internally via a management group, an Employee Stock Ownership Plan (ESOP) or a combination of the two
- Transferring the business to family
Each ownership strategy comes with a unique set of advantages and disadvantages. SES Advisors can help you explore these options and whether or not each is a viable fit for your strategic goals and personal legacy. If you are seeking a tax-advantaged approach that enables you to retain control of the business while providing liquidity for you as well as financial benefits for your employees, an ESOP may be the best solution.
As you consider your next steps in preserving and diversifying your wealth, you may wish to read How ESOPs Work, our overview of how these plans are structured and how they can deliver sustainable benefits to all stakeholders, and about our ESOP Feasibility & Transaction Analysis process.