Types of Exit Strategies
- Who do you want running your business?
- How much do you think it is valued at?
- How much value can you draw out of it?
- Where do you see yourself in the next few months and will it affect your desired outcome?
A very comprehensive look into the exit strategies that could suit you, your business and most importantly your lifestyle and the timeframe you desire.
These topics aren’t for the faint hearted and you will really want to listen carefully to catch the best result aimed directly at you and your business.
The end result of money can certainly appear to be sexy and flashy but the real wealth comes from being smart and doing things the right way that benefits not only yourself but also the business you have built. Smart money takes calculated risks and smart money gets advice on the options open to help achieve their goals.
Choosing the right exit strategy will ensure you are able to take the next step in your life worry free.
Employees
Employees are already the nuts and bolts of your operation and know the business inside and out. Some of them might even be passionate enough to want to push the business further.
If you have someone you trust inside your business, who you know would love to take the reins, then this could be the exit strategy literally right under your nose.
Family and Co – owners
There are many family businesses in the world today and many are run well but does it suit you to keep it in the family? Involving family members still takes some strategy to negotiate any pitfalls that may arise be it in a business or personal nature. Maybe a more cut and dry exit strategy would work for you as set out in the co-owner option.
Third Party & Going Public
The third party type of sale can take many and varied forms. You could find a buyer who’s a competitor, customer, or supplier in the same industry. These are known as strategic buyers. Alternatively, you could find a financial buyer such as a private equity group, hedge fund, institutional investor or simply a personal buyer.
Going public can often be seen as a huge success for a private business and can bring with it a large pay check but make sure you are aware of all the options. Going public has many hidden weaknesses that aren’t exactly general knowledge and you must be sure to be across all the options before stepping into the public arena.
Liquidation & Restructuring
Liquidation isn’t a bad thing and can often have a stigma attached to it but doesn’t always mean the business has gone sour. There are many reasons to liquidate and one could be that you may have more tangible assets of value stored within the business that you can sell.
Restructuring has a number of variables and could cover options, such as removing yourself from a portion of the business and allowing others to move in or refinance the business.
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