Internal Buyouts & Succession
Not every transition involves selling to an outside buyer. We help structure and execute internal transitions - management buyouts, partner buyouts, and family succession - with the same discipline we bring to external sales.
Types of Internal Transitions
Management Buyout (MBO)
Current management team acquires ownership from the existing shareholders.
Partner Buyout
One partner or group of partners acquires the interests of departing partners.
Family Succession
Transition of ownership to family members, often combined with outside financing.
Employee Ownership
Structured sale to key employees or employee groups.
The Challenge of Internal Deals
Internal transitions are complex. The buyer and seller often have existing relationships - as partners, employer/employee, or family members - that can make negotiations difficult.
There's often a gap between what sellers need to retire comfortably and what buyers can afford to pay. Creative deal structures can bridge this gap, but they require careful design.
Having an independent advisor helps ensure fair treatment for all parties and prevents relationship damage that could affect the business.
Common Questions We Help Answer
- • What is a fair price for this transaction?
- • How can we structure this so both parties' goals are met?
- • What financing options are available?
- • How do we handle the tax implications?
- • What should the transition period look like?
How We Help
Valuation
Independent valuation to establish fair market value for the transaction.
Deal Structuring
Creative structures to bridge gaps between buyer capacity and seller expectations.
Financing Support
Coordination with lenders and identification of financing options.
Negotiation
Facilitation of negotiations between parties with existing relationships.
Documentation
Support through the legal documentation and closing process.
Considering an Internal Transition?
Let's discuss your situation. We can help you understand your options and design a structure that works for everyone.