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The Justin Goodbread Show

The Financially Simple podcast is your one-stop resource for small business owners. Gain unique insights into growing, refining, and selling businesses. You will hear ways business owners have reduced their tax liabilities, increased their income, improved office morale, saved for the retirement of their dreams, and more.
Host Justin Goodbread is a serial entrepreneur, CFP® (Certified Financial Planning professional), CEPA (Certified Exit Planning Advisor), and CVGA (Certified Value Growth Advisor) with years of experience guiding business owners from start to exit in their business.

Aug 22, 2022

The idea of selling a company to a manager or a group of employees isn’t unheard of. In my decades of being an entrepreneur and consultant to other business owners, I’ve listened to many conversations about transitioning organizations to workers. But should you actually sell your business to your employee? What are the holes and blindspots that you need to consider?

In this episode, I discuss the advantages and disadvantages of selling your company to a key employee. I reveal the tax and legal risks involved in transitioning your business to an employee or group of employees. I also explain how hiring financial advisors can help manage risks during the selling process and share some different exit planning tools and approaches to use when selling your company to an employee.

“A key employee—because they have tenure and understand the mission, values, and legacy of the company—will more than likely remain committed to the direction and charge of the company.” - Justin Goodbread


This week on the Financially Simple Experience:

  • The advantages and disadvantages of selling your company to a key employee
  • The survival rate of transitioning a business to a key employee
  • The different exit planning tools and approaches to selling your company to a key employee
  • The installment sale approach to selling your business
  • Legal and tax risks associated with the installment sale approach
  • Exit planning with the employee stock option plan and how it works
  • The disadvantages of using the employee stock option plan


Our Favorite Quotes:

  • “There’s a certain fire in the belly of business owners that many employees may not have or may not be comfortable with; just because they’re a great employee doesn’t mean they’re a great entrepreneur or business owner.” - Justin Goodbread
  • “If the key employee is willing to take on their own capital and use that to put the down payment, you know that they’re sincere.” - Justin Goodbread
  • “You, as a business owner, should be able to know where your business is heading just by looking at your critical success factors: your key performance indicators, performance indicators, and key results indicators.” - Justin Goodbread


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About The Financially Simple Podcast

If you are looking for a podcast that speaks directly to the challenges and puzzles of running a business, you’ve come to the right place. The Financially Simple podcast was built for you. With over 400 episodes and counting, our host Justin Goodbread covers a broad range of topics, from starting a small business, to prepping it for sale, to growing your personal wealth. Justin’s combination of analytical skills, tough love, and a healthy dose of experience delivers practical ideas that will benefit business builders at every stage of their business journey. 

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Financially Simple is a division of WealthSource Partners, LLC (“WSP”), which offers investment advisory and financial planning services. All investing involves risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Business planning services offered by WealthSource Business Advisors, LLC (“WBA”).

This podcast is distributed for informational purposes only. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WBA, WSP or their affiliates or representatives. Statements made in this podcast are subject to change without notice. Neither WBA, WSP or their representatives, the podcast’s hosts or its guests have an obligation to provide revised statements in the event of changed circumstances. Statements made in the podcast are not to be construed as legal or accounting advice or as personalized advice of any nature. Listeners should conduct their own review of any statements made or strategies discussed and exercise judgment or consult with their own professional advisor to see how the information contained in this podcast may apply to their own circumstances.