How to achieve an employee buyout

Introduction

If you own a business, you need to decide what will happen when you want to retire or sell the business. And it's worth thinking about this sooner rather than later, so that you have as much time as possible to plan.

An employee buyout is an increasingly popular succession option. In effect, you sell the business to its employees. The employees become the new owners - though often most existing business and management structures stay in place.

An employee buyout like this can be a good way of ensuring the future of the business, with a highly motivated workforce. At the same time, it can also be an effective way of realising a good price for the value you have created.

This guide explains the advantages of an employee buyout and the key issues you need to consider.

Subjects covered in this guide