- July 2, 2021
- Posted by: Stratford Team
- Category: Business
Business succession planning for founders of privately held business enterprises can take many paths. One of the most common exit plans is ownership transfers to management or key employees and it is easy to see why: transferring ownership to key employees creates shared values-based goals and can give owners ample time to make their exit. There are many ways to make this transfer, such as long-term installment sales, leveraged management buyouts, employee stock ownership plans (ESOPs), and modified buyouts. This article only talks about certain modified buyouts and selling the business over time. To help understand this type of business succession planning, this article uses a hypothetical technology company called Tech Co. to illustrate the following techniques and information.
Values-Based Goals
One of the main questions faced in succession planning is how to properly motivate the future leaders of the business to continue the legacy the founder…
