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Tip #103: Is trying to sell the business to employees a good idea?
Many business owners think it might be easier to try to sell their company to their top manager or several key employees, but there can be serious risk. Usually, the employee doesn’t have the capital or ability to get a loan. But the biggest risk is if the sale doesn’t go through, the manager or key employees may have a bad attitude going forward, particularly towards a new owner, sabotaging a transaction or the operations. And needless to say, confidentiality can become a serious issue.
