Answer: No. Although many business owners decide to use the opportunity of their retirement to sell the company to employees, it is not necessary by any means. In fact, many owners choose to stay involved in some capacity for years after the transaction. 

When the owner leaves often depends on a combination of factors including the existing management team’s experience/capacity and the owner’s personal goals – all of which would be planned out in advance and described in the terms of the transaction. The National Center for Employee Ownership (NCEO) has a great resource with more information about this and other topics for business owners considering a transition.



For more information: https://www.nceo.org/article/employee-ownership-business-owners