Sale to Financial Buyer Provides a pool of capital that can be used to make investments in other companies, either for control or minority stake. Strategic Buyer A complimentary business interested in investing or buying the business for control or minority stake. An ESOP is a tax-favorable means of allowing employees to leverage the company with the intention of acquiring it. Leveraged Recapitalization Where the existing shareholders leverage the company in order to take a one-time distribution, either through a dividend or repurchase of security. This is a contractual agreement with varying terms and conditions, which typically enables a large company to help a smaller company access markets and provide capital to achieve their goals.
Companies can also choose a hybrid of the above, in addition to going public.
SA Again, owners really need to have an understanding of their underlying motivations for seeking liquidity. In order to gain this understanding, it is very helpful to utilize the help of experienced professionals, either an investment banker or transactional attorney. Once the motivations are established, owners will be able to understand the alternatives available to them and make an informed decision. The next step for an owner is to build a team of professionals who are in the business of helping companies assess their alternatives. As mentioned before, either an investment banker or transactional attorney would be the best choice.