Step 5: Transferring Ownership to Insiders

To transfer your ownership interest – successfully – to insiders (co-owners, family members or key employees) we must:

  • Achieve your objectives related to value and timing
  • Minimize your risk
  • Keep you in control of the company until you have received full payment for the company

To accomplish this, we may use individual or company performance criteria for ownership transfers, business cash flow for the primary source of funding for transfers and/or create plans that unfold over a number of years.

Possible Recommendations to Transfer Your Business to Insiders:

  • Ownership Skills Development Plan
  • Sale of Ownership Interest (using cash, a note or bank financing)
  • Bonus of Ownership Interest
  • Gift of Ownership Interest
  • Non-qualified Deferred Compensation Plan
  • GRAT (Grantor Retained Annuity Trust)
  • Buy-Back Agreement for Minority Owner

Learn about Step 6, Business Continuity.