Not every business transfer is a 100 percent sale

At some point, many entrepreneurs consider the option of a full sale of their business. The final decision depends on a wide range of factors, such as age, potential succession, personal future plans, and the financial resources that can be unlocked through a business transfer.

However, there are also alternative paths aimed at entrepreneurs who wish to partially cash out some of their wealth while remaining actively involved in the continued growth of their company. These alternatives are steadily gaining in popularity.

Freeing up capital without saying goodbye, the golden mean

So if you dream of selling your business but are not actually ready to let go of everything yet, know that in certain cases entrepreneurs can sell their entire share package and at the same time also reinvest in the capital through a Leveraged Buy-Out (LBO) structure. This is, in fact, a sale in which the entrepreneur still retains an equity stake after the transaction through a reinvestment technique: rollover equity. Thus, the selling entrepreneur does realize a sale of his business, but then immediately (along with the buyer) also reinvests a portion of the funds obtained back into his own business, but through the acquiring holding company.

The result? Part of the capital is secured and yet the entrepreneur is still involved in the next phase of the company's journey, now with a new partner on board. This creates a solid foundation for future growth, enriched with strategic insights, expanded expertise, and a broader network.

In most cases, this type of transaction results in a minority stake for the selling entrepreneur alongside a financial or strategic partner. However, depending on the deal structure, it is sometimes also possible for the entrepreneur to retain a majority share through the rollover equity technique.

Stronger together with an additional partner on board

Such a partnership can involve either a financial player – such as a private equity fund, family office, or investor – or an industrial player with strategic alignment.

Common objectives for entering such a partnership include:

• gaining access to new markets through an existing player with local knowledge and a specific market position.
• bringing in additional innovation, knowledge and network expansion.

getting a partner on board to accelerate growth - those who join forces with a financial party do so to grow stronger and possibly serve as a platform for making additional acquisitions together.

Conclusion: the power of flexibility

An M&A process doesn't have to be an all-or-nothing scenario. There are many options to choose from: from completely letting go to smart re-entry with a new partner on board and participating in the company's future growth plans.

Are you thinking about a possible sale of your company? Merodis has extensive experience in helping entrepreneurs realize this objective – whether through a full sale, a Leveraged Buy-Out structure like the one described above, or other tailored approaches.

Merodis
Terhulpensesteenweg 187
1170 Brussels - Belgium
T. 0495 38 17 81

Source: Sterck Magazine, 23/06/2025, This is an automatically generated translation of the original article, Link to original article.