BizSugar.com › Finance › Will Transferring Your Business To An Employee Or Family Member Meet Your Exit Objectives?

For many entrepreneurs protecting the livelihoods of loyal employees after selling their business is an important consideration. There is always a fear that a trade sale to a rival will lead to job losses, perhaps even the closure of the entire business, as the new owners seek to boost profits by eliminating duplicated resources. This fear often pushes the entrepreneur towards considering a management buy-out, or even a zero consideration transfer of all or part of the company to other family members.

When advising a client facing this dilemma I always ask them to consider three important questions about their exit:

How do they see the timing of their exit? - do you want to leave right away or are you prepared to work on a full or part time basis for a period of time to facilitate the handover.