Family or Internal Transition Pathways

Transitioning to a family member

A common first plan is to groom a child or other family member as a successor for the business. 

Other internal transitions

Internal transitions could also be to a key employee, or group of key employees. These folks could be currently working in the business, and/or you could intentionally recruit future successors to work in the business first while you assess if they’d be a good fit to own & operate the business in the future. 

Employee Ownership

An employee stock ownership plan (ESOP) is one way to transition ownership of the business from a single or small ownership group to ownership by all of the employees. There are also opportunities to secure a loan against an ESOP, allowing you to receive a large upfront payout.