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Article: Structuring an effective management team buy-out.(Business Succession)
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- September 15, 2003
- Author:
CopyrightCOPYRIGHT 2003 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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What can a sole business owner do if there are no successor owners or family members to take over the business when he or she retires, dies or becomes disabled? A management team buy-out may provide a solution.
A business succession plan provides the business owner the assurance that a successor owner will purchase the business at a mutually agreed upon time and price. Such a plan provides security and predictability. When a business has multiple owners, the natural successors to own and operate the business are the owners who remain after an owner dies, retires or becomes permanently disabled. In family businesses, the next generation of family members usually is ...