IBO Advisors: Explore a Different Liquidity Path

Finding the right liquidity path isn't simple.

Traditional exits — private equity, strategic sales, or IPOs — often require giving up control, accepting earn-outs, or navigating restrictive deal structures that don't align with your vision.

There's another path: one that provides liquidity, minimizes tax exposure, and keeps the business you built under your leadership.

An Independent Buyout (IBO) allows you to buy out some or all of your ownership — effectively creating a tax-free leveraged buyout of your own company.

Instead of selling your company to a Private Equity firm — which would use company debt to buy out your shares — we execute the same type of sophisticated financial transaction but without the Private Equity.

What Is an Independent Buyout (IBO)?

An Independent Buyout (IBO) is a strategic liquidity transaction that allows business owners to extract equity value without selling to a competitor or Private Equity.

This is the type of transaction Private Equity doesn't want you to know about. You can take capital off the table without them. And you can do it tax free.

Eliminate Shareholder Capital Gains Tax

Eliminate or defer selling shareholders' capital gains tax burden.

Retain Independence

The company continues to be run by existing leadership - no outside strategic influence.

Participate in Future Upside

Participate in future upside as your company continues to grow.

Reduce or Eliminate company tax

Reduce or eliminate company's taxable income.

Benefits for cost+ Gov Contracts

Under cost-plus contracts, ESOP contributions and dividends are fully reimbursable expenses.

Improve Employee Culture

Align incentives for management team and employees and create mechanism to attract top talent and grow business.

Private Equity

Loss of operational control
Strategic interference and oversight
Earn-out structures with uncertainty
High tax burden on proceeds

Independent Buyout (IBO)

Full leadership control retained
No Private Equity investor meddling
Predictable, structured payout
Tax free proceeds on a sale

	Private Equity	Independent Buyout
Company Value	$100M	$100M
Additional Warrant Value	None	15%+
Total Value of Sale	$100M	$115M
Taxes	~$24M (20% capital gains + state tax)	$0 (tax-free)
Net to Owner	~$76M	$115M
Operational Control	Buyer can interfere with running of business.	You retain leadership control
Rollover Requirement	Often 10-30% required	None
Tax Deductions	None available to buyer	Step-up in basis creates tax shield for buyer

Initial Evaluation

We assess your business, financial position, and liquidity goals. This confidential consultation determines if an IBO is the right fit.

Structuring

Our team designs a custom transaction structure, incorporating tax optimization, financing strategy, and control retention.

Financing

We secure appropriate financing through lenders and structures that align with your business cash flow and risk profile.

Execution

Legal, tax, and financial advisors work to close the transaction, ensuring a smooth process with minimal business disruption.

Ongoing Advisory

Post-transaction, we provide continued strategic guidance to ensure long-term success and value creation.

This works if...

An IBO is designed for established, profitable businesses where the owner wants liquidity while maintaining control and minimizing external interference.

You run a $3M+ EBITDA profitable business

The economics of an IBO become attractive at this threshold and scale from there. You don't need hyper-growth. You need consistency. If your financials are solid and your operations are repeatable, the structure fits.

You want liquidity without new partners or intrusive oversight

You're not interested in selling to a strategic acquirer who'll restructure everything or Private Equity which can be intrusive to how you run the business.

You want to take some capital off the table

Whether you want to continue to run the business or if you want to sell the business and retire - an IBO can help you achieve that goal.

You're thinking about exit now or in 1-5 years

Maybe you're exploring options. Maybe you've already started preliminary conversations with advisors or buyers. Either way, an IBO is worth modeling now - so you're making the decision with full information, not partial options.

Built by someone who has been on every side of the table.

More than 25 years of experience building companies, executing M&A transactions, partnering with private equity, and advising entrepreneurs. Led deals totaling $2B+. Built five companies from the ground up. Completed or advised on over 100 M&A and sale transactions. Worked with founders navigating liquidity decisions in industries from technology to manufacturing to services.

This isn't theoretical. It's born from seeing too many talented operators give up control they didn't need to surrender, or pay taxes they could have deferred, simply because they didn't know another structure existed.

"Most owners don't know this option exists. The ones who do wish they had learned about it years earlier."

Book a Confidential Conversation →

Navigating Your Path To Prosperity

IBO Advisors works with a team of banks, lawyers, ESOP firms, and tax experts who understand the terrain of the global economy and have expertise to guide you in the process of selling some or all of your company without using a Private Equity firm.

Together they have done over 400 successful transactions over the last 25 years.

25+ years of experience

$7B in Payouts

$27B in enterprise value

400+ Successful transactions

Advertising & Marketing	Apparel	Architecture	Aviation
Construction	Consumer Products	Defense Contractors	Distribution & Logistics
Government Contractors	Healthcare	Home Care	Manufacturing
Restaurants	Staffing & HR	Technology	Transportation