Most owners who are thinking about selling their business generally know of two options: you can sell your company to a private equity firm or to a competitor (strategic buyer). There is a third option that offers significant tax advantages, which every owner should be aware of before making one of the most important and critical decisions in their lifetime, an Employee Stock Ownership Plan (ESOP).
Owners should understand all three alternatives, including the financial benefits of each type of sale, and other considerations such as protecting your legacy and your employees after an exit.
When interviewing advisors, most investment banks don’t even mention ESOPs as an alternative to a third-party sale. At ButcherJoseph, we are dedicated to executing the best option for our clients, whether that be to a strategic buyer, private equity or and ESOP sale. Our goal is to ensure owners have access to all their options as well as an advisor who has expertise and can deliver on all of them. This philosophy has enabled us to help hundreds of clients get the best possible outcome available to meet their unique needs.
If you haven’t assessed each of your sale options, we’d be happy to provide you with a complimentary feasibility analysis, so you have a full understanding of all your alternatives as well as the benefits and potential drawbacks to each. Just click here to submit a request.
What Does a Feasibility Analysis Include?
- The first component of a feasibility analysis includes a preliminary valuation that provides owners with an initial assessment of your company’s potential range of value.
- The next is a transaction scenario, which provides you with details on how a sale can be structured and financed.
- The third component illustrates transaction results. The value you and your employees can likely expect after the transaction is completed.
- And lastly, process overview. This illustrates the breadth and scope of relevant transaction processes needed for a successful execution, including an outlook of what you can expect regarding timing and deal-team responsibilities.
If you are interested in learning more about your potential sale options or if you’re interested in a second opinion, click here to request a complimentary feasibility analysis for your business.