XYZ Limited

Two founders own 50% each. Lucy is in mid-50’s and looking towards exit. Cath is in her mid-40’s and happy to stay in. Previously sold a 50% stake to another company in the same/complimentary market. Didn’t work out so bought back the shareholding.


Subsequently identified two senior managers who could step up to director/owner role over time. Each founder sold down 5% to senior managers. In this case (a) freed up tax free capital (b) small reduction in cashflow and (c) no dilution of control.

Lucy plans to sell down progressively over next few years and reduce day-to-day involvement. Cath will retain 45%. Trade buyer is most likely purchaser (and much greater sale price achievable for all). 


Business has systemised most of it’s processes so future business success is not dependent on founders.