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.