Describe the exit strategies available to the founder of the small business; if he/she wants to sell the company to insiders, and if he/she is willing to sell it to outsiders

What will be an ideal response?

Answer: Family business owners wanting to step down from their companies can sell to outsiders, sell to insiders, or transfer ownership to the next generation of family members. Common tools for selling to insiders (employees or managers) include sale for cash plus a note, leveraged buyouts (LBOs), and employee stock ownership plans (ESOPs). Transferring ownership to the next generation of family members requires a business owner to develop a sound management succession plan.