How an employee buyout works.

A practical inside succession moves through seven connected decisions.

Step 1 — Value the business

Establish a credible value range and understand what drives it.

Step 2 — Test buyer readiness

Review the employee buyer’s experience, finances, responsibilities, and transition plan.

Step 3 — Compare deal structures

Model the down payment, seller financing, earn-in, equity transfer, and timing.

Step 4 — Prepare financing

Build the lender-ready story, documentation, and cash-flow case for the transaction.

Step 5 — Organize due diligence

Bring financial, operating, ownership, insurance, and transaction documents into one clear deal room.

Step 6 — Document the handoff

Coordinate the closing path with qualified legal, tax, insurance, and lending professionals.

Step 7 — Support the transition

Track commitments, milestones, training, and the move from employee to owner.