What types of company handover are there?
Many business owners first consider the option of keeping the company in the family. If there are no valid candidates within the family, employees may be considered. When the company is sold to the existing management or long-serving employees, that’s known as a management buy-out (MBO). Team successions – where family members and employees share succession – are increasingly commonplace today. If there’s no feasible internal solution, a management buy-in (MBI) may be considered, depending on the sector. In such cases, the owner sells their company to a successor who doesn’t already work there. The buyer could be a private individual, another company or an investor. There’s a strong market, for example, for medical practices and pharmacies. But garages and restaurants or hotels can often be more difficult to sell. That’s why around 30 percent of smaller companies simply cease trading.