• We initiate contact with business owners to determine their openness to our approach. With their consent, we then work directly with and represent the employees or management team interested in acquiring the company. Our role includes securing financing, which may involve investing our own capital alongside the employee/management group. Consequently, we exclusively represent—and are compensated by—the buyers, not the owners or sellers.

  • Each transaction is unique. Typically, we are paid a fixed fee agreed upon upfront, due at closing. In selective cases, we may also have a warrant to purchase a small portion of the company (valued at the acquisition price)

  • Most of the companies we work with involve owners who are retiring, and we generally avoid using seller financing. However, in certain situations, seller financing may be necessary to complete a transaction. This depends largely on the sale price, cash flow, and the current lending/interest rate environment.

  • Based on the complexity and timeframe, periodic payments may be required. This will all be disclosed and agreed upon at the onset. There will be no surprises!

How We Work with You and Your Team

Note: We understand it’s a lot of information. If you do not want to read all of this, we can discuss when we meet.

  • We evaluate prospective employee-buyers based on three critical questions:

    1. Do you understand what owning and managing the business entails?

    2. Do you possess the skills and experience necessary to effectively run the business?

    3. Are you prepared for the challenges and responsibilities of ownership?

    An affirmative answer to all three is essential. However, we recognize that even highly capable employees often lack the necessary financial resources, and in some cases, the specific knowledge required to complete the purchase. That's precisely where Insight Exits provides value. We assist qualified individuals and teams by structuring financing solutions, including securing debt capital and, when appropriate, directly investing equity. Additionally, we offer team-building support and coaching to ensure a smooth transition as employees take on their new roles as business owners.

  • Insight Exits collaborates with privately held companies across diverse industries and sizes, focusing primarily on profitable enterprises with established operational stability. We seek companies that demonstrate consistent performance, capable management teams, and clear potential for successful ownership transition to employees or management groups.

  • How long does the transaction process typically take?

    Each transaction is unique and influenced by various factors, such as company size, transaction complexity, and financial structuring needs. While timelines can vary significantly from case to case, it is prudent to budget at least six months from initiation to completion of the ownership transition. Insight Exits works diligently to streamline the process and accommodate specific circumstances of each transaction.

  • Insight Exits is not a law firm and does not provide legal advice. However, we maintain strong relationships with several law firms specializing in Small and Medium Business (SMB) transactions. Typically, the selling firm will have legal representation, and we strongly recommend that buyers also retain independent legal counsel. Regarding accounting, while we are not CPAs, we assist with financial due diligence, preparing financial presentations, and establishing accounting practices for the newly formed company. We also provide ongoing bookkeeping and internal accounting support. Additionally, we collaborate closely with accounting firms that specialize in servicing SMBs.

  • Insight Exits does not promote or facilitate "no money down" transactions. Employee-buyers are expected to have "skin in the game," meaning they must contribute some equity to the purchase. It is common and understandable that employees may not have enough capital for a full cash transaction. Typically, institutional financing is utilized, with debt playing a significant role. As a general guideline, approximately 10% equity is recommended, although this can vary by transaction. Importantly, not all equity needs to come directly from the buyers themselves—some equity contribution is essential, but additional subordinated debt, which ranks below senior debt, may also be considered equity in certain transaction structures. In general, the more we learn, the better we can answer this question. 

  • Insight Exits provides ongoing support tailored specifically to the needs of each transaction. Our involvement after closing can range from part-time or fractional CFO services to handling bookkeeping and internal accounting tasks. Additionally, we manage lender relationships, handle necessary financial reporting, and maintain close relationships with experts in organizational development who can assist with team integration and ensure a smooth operational transition. Ultimately, our role post-closing is flexible and designed to align closely with your particular needs and objectives.

    1. A selling price;

    2. Information to support the price such as financials, appriasals, etc.

  • We encourage you to contact us to confidentially discuss your interest. While approaching an owner with a thoughtful, well-prepared proposal can significantly increase the likelihood of a positive conversation, it is also important to consider potential risks. An unsolicited offer could potentially lead to unintended consequences, including affecting your current employment status if the owner is not open to selling. Alternatively, we can discreetly approach the owner on your behalf to gauge their openness to selling and willingness to consider an employee buyout. We will guide you through this sensitive process carefully, ensuring discretion and strategic planning to help you achieve your objectives safely.