There are two basic methods to sell to your employees, the first and most common is the ESOP. An ESOP is flexible–the sale can range from one percent of the company to one hundred percent, it also provides tax-advantages to the selling owner. It can also be combined with other succession strategies like family ownership or a management buyout. Currently less common is the Worker Owned Cooperative which can be more useful for smaller businesses.
Video – Taken from the DVD “Exiting Your Business: Small Business Succession Planning”