Many small businesses, up to 20 employees, are run in a very hands-on manner by their owners. This can work well for everyone and hopefully provide the proprietors with a good level of income.
When it comes to the moment they want to move on, or retire, however, their future financial independence will depend on how much the business is worth. If the business is dependent on them, it will have limited value, but if it functions as a fully autonomous company, it will command a significantly higher value.
So can a management buyout be a good way to sell your business? (more…)