Five Exit Paths You Probably Have Not Considered

One-sentence takeaway: you have more than one way out—these five under-used routes can match cash goals and legacy wishes without handing control to a broker.

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 [BusinessBuyingSecrets p42].
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 [ExecutiveBriefing p31].
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 [BusinessBuyingSecrets p67].
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 [ExecutiveBriefing p45].
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 [BusinessBuyingSecrets p74].
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

1. Score your cash need on a one-to-ten scale.

2. List three legacy items you cannot lose.

3. 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.