Exit Strategies. What Are They And What Can They Be

Exit strategies simply put, are the plans that you have to leave, divest yourself of, close, or sell your business.

And we assume that you want to make some money at that point, right?

Hopefully you will have identified what you wanted in the end and have structured your business plan to deliver that – that you haven’t just got yourself stuck in a cycle of doing the business to survive and haven’t acquired any capital, equity, or saleable value.

In addition, the formal structure of your business may limit the options available to you.  Your Memorandum and Articles of Association may limit the business activities so much that potential investors or buyers could be restricted.

Wider options that should be available for you to consider are:

  • Selling on the Stock Market or ‘going Public’
  • Passing the business on to a family member or successor
  • Taking a non-executive role whilst retaining part ownership
  • Selling the business

There are implications on all of these so inform yourself.  For example you can request a hard copy of Succession Planning in Family Companies here and reading through some of our other blogs can help you move closer to other options that require business planning and evaluations.

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~ by TCM on May 11, 2011.

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