September 15, 2022

Ryco Advisors, LLC Advises Specialty Retailer on its Sale to Key Employee

Ryco Advisors, LLC (“Ryco Advisors”) is pleased to announce the sale of an Atlanta-Based Multi-Location Specialty Retailer (“Specialty Retailer”) with over $10 million in revenue to a Key Employee (“Employee”).  Ryco Advisors acted as the exclusive financial advisor to the Specialty Retailer.

For years, the owner of the Specialty Retailer (“Seller”) wanted to sell their business to a key employee, but never knew how to execute a sale, while still achieving their goals and maximizing their exit value.  Ryco Advisors was able to design a deal structure that met the unique needs of both the Seller and the Employee.  Ryco utilized an SBA lending product that allowed the Employee to acquire the business without a large amount of upfront capital, while still allowing the Seller to walk away with 95% of the purchase price in cash at closing.

Are you interested in selling your business to an employee?  Ryco can help.

Many times, we meet business owners that have a key employee(s) who would be the perfect buyer(s) for their business, but the owner doesn’t know how to make that happen for a variety of reasons, including:

• The key employee does not have enough capital to purchase the business
• An ESOP is too expensive given the size of the business and not ideal for the owner who prefers to receive the majority of the purchase price at closing
• The owner doesn’t know the value of the business
• There is too much emotion between the owner and the employee to navigate a transaction without an intermediary

Ryco is skilled at navigating these issues and ensuring a successful transaction that meets the needs of all parties involved.  If you’re thinking about selling your business to an employee or group of employees, please reach out and we can talk to you about your options.