Running a business can be complex and it requires looking to the future. Many business owners get caught up in the moment and don’t even think about an exit strategy.
Nonetheless, an exit strategy from your business is important, as it offers stability for key stakeholders and allows smoother transitions between owners. Outlined below are a few options to consider.
Selling the business
One exit strategy may be to sell your business to a new owner. This could be a family member, a colleague whom you have trained or a completely new third party.
Selling to someone you know can be beneficial because it can limit the upheaval of the business. They’ll already be familiar with your methods and core values and may simply wish to pick up where you left off. There are some potential drawbacks to including someone you know in your exit strategy. For example, this may create conflict among jealous family members who want to be your successor.
Selling to a larger company
A merger with a larger company can also form part of your exit strategy. As a successful business, your rivals would love to corner your share of the market. By pitching to a larger company, you could obtain a healthy sale price that allows you to retire or begin your next business adventure.
Liquidating the company
There are few businesses that stand the test of time, and you may find at a future date that your business has run its course. In some cases, the easiest strategy is to simply close the doors.
You have numerous options at your disposal for creating an exit strategy. The best option is to actually have one. We help business owners understand their options and draft a plan that works best for them and their successors. Contact us for a consultation.