EMPLOYEE INCENTIVE PLANNING
Before they can sell or exit their businesses with financial security, most owners need to grow their companies’ cash flow and transferable value significantly. Without management leading the charge, this is a most difficult task in today’s economy.
Few sophisticated buyers will seriously consider acquiring a company that lacks a capable management team that remains with the business after the owner exits.
A sizeable percentage of businesses are sold to key employees—up to 40% according to a recent survey of 700 written exit plans created by advisors belonging to the BEI Network of Exit Planning Advisors.
Transferring a business to children is especially risky in the absence of key employees who will remain with the new ownership.
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