Five Exit Paths You Probably Have Not Considered

1 Management Buy-In (MBI)

What it is An outside operator with sector experience buys a controlling stake and takes over day-to-day running.
Why it works • Keeps the company independent • New owner often brings growth capital and fresh energy • Deal can close in under four months with the right prep.
Watch-outs • Buyer must secure asset finance or investor equity • Check cultural fit early.

2 Employee Ownership Trust (EOT)

What it is You sell at least fifty-one per cent of the shares to a trust that benefits all employees.
Why it works • Zero capital gains tax on the sale if structured correctly • Staff keep their jobs and gain a stake • Payments can be staged from future profits.
Watch-outs • Works best when profit margins exceed ten per cent • Needs rock-solid management team in place.

3 Vendor Finance with a Strategic Buyer

What it is Deferred payments funded by the company’s own cash flows after completion.
Why it works • Reduces upfront price gap between you and the buyer • Lowers tax in the year of sale because income spreads out • If the buyer is a larger operator they can improve cash flow fast, protecting your note.
Watch-outs • Insist on security over shares or key assets • Add default interest to keep payments on time.

4 Partial Sale and Bolt-On Partnership

What it is Sell sixty to eighty per cent to a sector player who plugs your firm into a bigger platform while you retain a minority stake.
Why it works • Immediate liquidity plus a second payday when the group exits • Shared services lower overheads and lift EBITDA multiple • Ideal for owners who want to stay involved two to three years.
Watch-outs • Governance rules change once you own less than half • Confirm drag-along and tag-along clauses before signing.

5 Earn-Out for Growth-Minded Owners

What it is Part of the price is fixed, the rest ties to future profit targets you help deliver.
Why it works • Lets buyers de-risk the deal so they pay more overall • You can double your headline price if targets are realistic • Keeps staff and customers calm because you stay on board during hand-over.
Watch-outs • Nail down revenue recognition rules • Avoid targets outside your control like macro-economic indexes.

Quick Self-Check

• Score your cash need on a one-to-ten scale.
• List three legacy items you cannot lose.
• Match those answers to the route above that best preserves both.

Next Action

Pick the path that fits your score, then gather twelve months of management accounts and a staff org chart so you can brief the first serious buyer with confidence.