Understanding Exit Options for Middle Market Companies

Business owners in the middle market, typically with revenues between $5 million and $200 million, often consider various exit options when selling their companies. The primary and most common option is selling the business outright, providing the owner with a significant cash payment. However, other alternatives include transitioning ownership to employees through an Employee Stock Ownership Plan (ESOP) or passing it down to family members. These options can allow owners to maintain some level of involvement or ownership in the business post-sale, which is particularly appealing for many entrepreneurs.