Each path serves a different owner. Most owners ultimately use a blend. Use these summaries to start the conversation with your CPA, attorney, and family.
Family Succession
Owners passing the business to children or relatives.
Transfer ownership and leadership within the family while preserving culture, employees, and legacy. Requires a clear development plan, governance, and tax structuring.
Strengths
- · Preserves family legacy
- · Continuity of culture
- · Long horizon for the transition
Watch-outs
- · Successor readiness varies
- · Family dynamics & estate complexity
- · Often illiquid for retiring owner
Management Buyouts
Owners whose senior team is ready to run — and own — the business.
Existing leaders acquire the company, typically with seller financing and outside capital. Retains institutional knowledge and rewards the team that built it.
Strengths
- · Keeps the team in place
- · Smooth customer & vendor handoff
- · Confidential process
Watch-outs
- · Management may lack equity capital
- · Often requires seller financing
- · Negotiation across long-term relationships
Partial Recapitalizations
Owners who want liquidity now but aren't ready to fully step away.
Sell a meaningful stake (40–80%) to a capital partner while keeping equity and an operating role. Take chips off the table, professionalize the business, and earn a second bite at the apple.
Strengths
- · Significant liquidity event
- · Stay involved on your terms
- · Second exit usually larger
Watch-outs
- · New governance and reporting
- · Shared decision rights
- · Requires institutional-quality reporting
Full Exits
Owners ready for a clean transition to a new owner.
100% sale to a strategic, private equity, or operator buyer like RAW Ventures. Maximum liquidity with a defined transition period to protect employees and customers.
Strengths
- · Maximum liquidity
- · Clean break with defined transition
- · Buyer absorbs growth risk
Watch-outs
- · Cultural fit matters
- · Transition period requirements
- · Tax planning is critical
Employee Ownership (ESOPs)
Owners who want employees to own and benefit from the business they helped build.
Sell to an employee stock ownership trust. Significant tax advantages and legacy benefits when the company has stable cash flow and a strong second tier of leadership.
Strengths
- · Powerful tax advantages
- · Legacy-positive narrative
- · Employees become owners
Watch-outs
- · Set-up costs and ongoing trustee oversight
- · Valuation by ESOP fiduciary
- · Requires steady cash flow to service debt
Seller Financing
Owners willing to finance part of the purchase price for the right buyer.
Hold a note for a portion of the transaction. Expands the universe of qualified buyers, can improve total proceeds, and signals confidence in the business.
Strengths
- · More qualified buyers
- · Often improves headline price
- · Continued income post-close
Watch-outs
- · Counterparty risk
- · Delayed full liquidity
- · Requires sound buyer diligence
Joint Ventures
Owners with a real estate, land, or operating asset that benefits from a partner.
Contribute the business or asset into a JV with a capital or operating partner. Common in land development, real estate-heavy operators, and roll-up plays.
Strengths
- · Keep ownership upside
- · Bring in capital and capability
- · Phased liquidity over time
Watch-outs
- · Governance complexity
- · Partner alignment is critical
- · Slower than a sale