There is an alternative buyer you may not have considered, which is your employees. To qualify the company needs:

• At least $1 million EBITDA upwards
• At least 15 employees
• Middle management in place or the ability to put into place and take over the owner’s role

Advantages:

• X5 multiple of EBITDA
• Employees DO NOT contribute any cash to transaction
• Get approximately 33% cash at closing
• The business pays you back from profits; PRE-TAX
• Take care of your trusted and loyal employees who helped you build the business
• Many tax advantages
• Over a five to ten-year period, you employees will own 100% of the company.

Best potential companies for this type of a sale:

• Employee-friendly/Owner view employees as a valued part of the business’
• Owner(s) concerned about Legacy of the business
• Owner(s) wants to remain active and member of the Board of Directors and/or executive
• Owner(s) dislike paying taxes

All compliance and legal is performed by third part professionals.

Think of this as another potential buyer, willing to pay your price, not having to go through the sausage machine of dealing with private equity.

Dolan Sales will help you explore ALL alternatives, this is but one.  You may not realize it, that Publix ® Super Markets, Chobani and Wawa are employee owned companies, according to the National Center for Employee Ownership (NCEO).

Call Robert M. Dolan to learn more about all your alternatives on a highly confidential basis.  Cell 954-579-4687 bobd@dolansales.com

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