* Let’s imagine a situation: You have a business and it has been doing really well since it started operating five years ago. Now you are looking to exit the business. Why? You have explored an upcoming opportunity that cannot be missed but to catch that you have to let go of this business and you do not know how. That’s where we come and form an exit plan for you to execute and which can let you chase that opportunity. Let’s take a step back from this situation and let us explain why business owners want to leave their business.
There are so many reasons for a business owner to leave. Some are planning to retire, some do not know how to proceed further in their business, some want to leave the business to their successor (see Succession Planning). These are some reasons for leaving a business and whatever the reason may be, it is encouraged to do an exit plan for you to leave at ease and clean.
“I have decided to leave my business and how do I exit my business?”
It depends on the person leaving the business to derive upon what to do next. Our suggestions are as follows:
Business Sale: Selling your business is a common strategy for any business owner to do. (see Business Selling)
Merge your business: Merging your business with another business adds value to both your employees and other stakeholders. It also provides expansion opportunities for both businesses, increases competitive edge in the market and creates sustainability within the businesses.
IPO: Some businesses are hugely sizeable that allows owners of the business to lookout for an IPO to vest out their current holdings that can transition their exit from the business.
Liquidate: This option is highly recommended for businesses without debts. Business can liquidate their assets which leads to high liquidity in their business. This method can help in winding down their business more seamlessly and efficiently.
Buyout: A buyout can be considered for certain businesses. These businesses can be bought by existing competitors, businesses of other nature willing to expand in another category and holding companies that are looking to diversify their portfolio of businesses.
Above are some of the exit strategies applicable for business owners looking for an exit. Contact us to learn more on how we can plan your exit from your business.