There are several options open to business owners considering an exit:
A management buyout can appear to make sense. The management team know the business and will understand the customers and suppliers. Investing their own cash gives them a real incentive to work to make the company succeed. The stress of raising and managing the debt required can put significant stress on the individuals and any disagreements can have far–reaching consequences.
Management buyouts are really a deferral of succession rather than a solution. At some point these managers will want to exit and the uncertainty and distraction of succession planning returns.