Answer

What's the biggest challenge with an employee ownership sale?

Short Answer

The biggest challenges faced by most EO sales are:

Business generating adequate cash flow to pay for financing the EO sale
Business having the ability to continue to run and perform even after the owner sells.

Some of the bigger challenges commonly associated with employee ownership sales include:

Creating a clear plan for leadership succession after owner sells.
Building conviction among employees to remain committed to it after the owner sells.
Ensuring the business is in strong financial position after the owner sells.
Structuring the sale such that the valuation, cash paid to owner at-closing, and financing costs are fiscally viable for the cash flow generated by the business.

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