VIRTUAL BUYOUT

Our virtual buyout program can be an ideal exit strategy for owners who would like to retire but would prefer not to sell their business. With our virtual buyout program ownership and all major decisions remain under the owner’s control. We partner with them, handling ongoing operations, overseeing the managerial succession, and serving as an ongoing outsourced CFO.
Financially, owners can expect a slightly lower upfront payment, but much greater total proceeds over the mid- to long-term, because they will continue to collect dividends from the business as usual, rather than having to reinvest their sales proceeds in stocks, bonds, or other financial instruments. Once the owner has received the cumulative value specified in the buyout agreement, we become a minority owner of the company. However, our client partners will continue to receive a stream of dividends.

The advantages of our virtual buyout program include:

  • Ongoing dividend stream that continues indefinitely
  • Higher financial returns over the mid- to-long term than selling and reinvesting the proceeds in public markets
  • Elimination of disruptive sales process, such as the buyer’s due diligence
  • No disruption to company values, culture, and employees
  • Deferring immediate tax liabilities and enabling better tax planning

For many clients, our virtual buyout program provides the best transition solution, allowing owners to maximize financial rewards, maintain ownership control, and protect their legacy, while handing off the headaches to our team.