After years of building up your business you have now decided it is time to move on. But what will happen to your business?
If you own a business, you should have an exit strategy.
An exit strategy is a plan of what will happen to your business, its employees and assets should you choose to leave the company. The plan should also consider what will happen should the business fail.
There are various types of exist strategies from strategic acquisition to management buyouts or selling the business to someone you know. They may also include plans for mergers or liquidation of the business.
This will depend on the size of your business as well as your industry. However, there are a few points that all exit plans should consider:
As a business owner, it’s vital to have an exit strategy if you think you will ever need or want to sell your business. An exit strategy is a plan for how you will sell your business. It doesn’t have to be complex, but it should identify what you expect to get from the sale and the expected timeline and conditions.
You might want to sell for many reasons, such as retirement, illness, or simply wanting to move on to something new. Exit planning gives you the ability to control the sale of your business and get the best possible price for it. It also allows you to plan for the future of your employees and customers.
Without a plan to leave, you could sell your business for less than it’s worth. So, if you think that you might sell your business one day, be sure to put an exit strategy in place now.