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Business Exit Ready

Selling to your team

Selling to your team: how a management buyout works

By Greg Hamlyn, Founder, Synergy Growth Group. Last updated 29 October 2026.

Short answer

A management buyout is when your managers or team buy the business from you. It works best when they already run it without you. The deal is often paid for with a mix of a loan and staged payments to you, so get advice from your accountant and lawyer early.

This is general information only, not financial or tax advice. Get your own advice from your accountant and a licensed financial adviser.

When your team could be the buyer

Your best buyer may already work for you. They know the customers, the jobs and the way you work. A management buyout, or MBO, is when they buy the business from you.

What has to be true first

These are the same things the Exit-Ready Program builds.

  • A second in charge who already runs a normal week
  • A team that makes decisions without you
  • Clean numbers they and their lender can trust
  • Customers who see the team, not only you

How it is usually paid for

Your team may not have the full price in cash. The deal might use a bank loan, staged payments to you over time, or a mix. The right structure depends on your situation.

The risks to plan for

  • If you are paid over time, part of your money depends on the business doing well after you leave
  • The team may be great at the work but new to running a business
  • Relationships can change when an employee becomes an owner

How to start

Get the business running without you first. Then have an honest talk with the person who could lead it. Bring in your accountant and lawyer before anything is agreed.

Questions owners ask

What is a management buyout?
When the people who run the business, often your managers or team, buy it from you.
Is selling to my team a good idea?
It can be, if they can run it without you and the deal is paid for properly. Get advice from your accountant and lawyer.
How long does a management buyout take?
It depends on how ready your team is. Building a second in charge often takes longer than the sale itself.

This is general information only, not financial or tax advice. Get your own advice from your accountant and a licensed financial adviser. Source: ATO, small business CGT concessions.