Selling a business to one or more of your employees can be richly rewarding. To see the business continue forward under the leadership you selected and groomed, acknowledges all your efforts and extends the business legacy. It can also be extremely difficult and risky. Your employees likely lack cash and collateral. It may be uncertain that they can profitably run the business without you. Critical issues including taxes, cash flowing payments to the selling owner, and dealing with personal guarantees need to resolved, or the whole thing may fall apart.
The resources below may help you understand the key challenges involved with selling a business to your employees, and how to successfully implement this exit strategy.