Defining the Exit
There are several possible methods for exiting a business:
Selling the business to partners, strategic buyers, investors, competitors, international buyers, or the public
Recapitalizing the business for partial liquidity
Merging the business to achieve enhance valuation and/or marketability
Transferring the business to family, management or employees
Gifting the business to meet personal and/or tax planning goals
Liquidating or partially liquidating the business
Exiting a business is a process, not an event. The optimal exit will be achieved through the implementation of a managed process which includes:
Establishing a business valuation reference point
Clarifying “Life-after-Business” goals
Working with a team of specialist advisors
Preparing a written plan
Identifying and evaluating the applicable alternative strategies (options)
Executing any necessary positioning or preliminary strategies
Executing the selected exit strategy
An optimal exit requires a team of professional advisors covering multiple disciplines. No single advisor is an expert in all of them, so the process should involve inputs from a team of experienced advisors, and should address the possible need to re-position the business before going to market.
