Management Buy Out/In & ESOP’s
One of the most successful succession plans is utilizing a Management Buy Out/In (MBO) or an Employee Stock Ownership Plan (ESOP) approach. The relative ease and advantages of these approaches combined with a large number of financing alternatives makes these techniques very popular.
MBO’s have many advantages over a sale to an outsider. Not only are you able to complete a sale in relative secrecy, but also MBO’s and ESOP’s are easier to finance, quicker to complete, and result in energizing the existing management team.