As an entrepreneur, you have built your company over the years with dedication and hard work. Retirement is approaching and there are no successors—so how can you realize the value of your business?

In my experience, most entrepreneurs in this situation immediately think of a full sale of their company. This is certainly a common strategy, but it is not the only one. What options do you have to transfer your business, and which strategy is the most suitable?

In this article, we take a closer look at strategies for a successful business sale.

A Full Sale of the Business

The best-known strategy for most entrepreneurs is a full sale. The seller receives the purchase price and completely steps away from the company. The buyer takes full control of the business and determines its future.

A Phased Sale of the Business

When you sell your company in several stages, it is called a phased sale. In a first phase, you sell part of the business and remain a minority or majority shareholder. You stay involved for a certain period and in a later phase you sell the remaining shares.

This strategy allows you to partly cash out and secure wealth that is largely tied up in one asset class—namely your company shares. And you can do so without losing your entrepreneurial drive, because with the right agreements in place, you can continue operating as managing director. In addition, you can help ensure that your company will be in competent hands for the future. A phased sale—sometimes also referred to as a pre-exit—can be an effective way to prepare your business for its eventual transfer.

So who can you turn to for a phased sale?

Your Current Management — Management Buy-Out (MBO)

• In an MBO, you sell part of your company to the current management team. This allows you to leave the business in competent hands, while still remaining involved in its future. The current management acquires part or all of the shares.

An External Manager — Management Buy-In (MBI)

• In a Management Buy-In, you sell the business wholly or partly to an external management team. The new owners take over the leadership of the company, meaning your operational involvement will decrease.

A Financial Investor

An investor provides capital, a network, and experience to help you take the business to the next stage. Financial investors are engaged partners who actively contribute to the company’s growth—though not on an operational day-to-day basis. The advantages are that you can remain on board, meaning you do not have to give up your entrepreneurship. In addition, you can already receive part of the sales proceeds, allowing you to secure part of your wealth.

A Silent Investor

A silent investor also seeks a return on investment—through acquiring a portion of the company’s shares. However, they are less actively involved and leave the leadership largely in the hands of the current owners.​