Business owners often overlook selling their company to their management team, with help from an outsourced CFO, as a possible exit strategy. But for solid companies with good cash flows, selling the company to management may yield a higher financial value for the owner, and a much brighter future for the business, management, and the seller. Business owners choose this exit strategy as in the right situations this type of sale can provide four key benefits:
1. Sale at a higher value than offered by third private equity firms.
2. Receive significant cash proceeds at the closing.
3. Sale to a group most qualified to successfully run the business – the management team.
4. Owners get to stay involved in the business.