Advantages of Transfers

Advantages when transferring a business to key employees or management.

6 Advantages to Business Transfers

Financial Security

Financial security is often the primary reason why business owners look to transfer their businesses to key employees or to management. With proper planning, business owners gain four distinct advantages in terms of financial security including time factor, time margin, tax advantages and values-based goals.

Time Factor

Business owners who transfer to management afford themselves the luxury of extra planning time. Having extra time to prepare gives owners options if something unexpected were to happen, such as disability or receipt of a huge inheritance.

Time Margin

The time margin is the time that owners spend developing interests outside of the business. An ownership transfer to management gives a sizable time margin to pursue new interests while receiving income and maintaining control.

Tax Consequences

Transfers to management can maximize tax consequences. BEI has developed an insider sale process that typically reduces the cash flow needed to achieve the owner’s financial security goal by 30-40 percent, compared to traditional techniques.

Advantages of business transfers: Values-Based Goals

Business owners get the best chance at fulfilling their values-based goals like legacy and culture, benefits to employees, and family harmony.


In successor transfers, buyers are prequalified through on-the-job training and observation. Management is motivated to stay with and grow the company, just like any other owner.

Information presented by Kris Maksimovich, AIF®, CRPC® CExP™, Global Wealth Advisors,, a Member of BEI’s International Network of Exit Planning Professionals:

 ©2019 BEI.


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