Exit Strategy Planning
Planning for the exit from a business can be as difficult as starting a business and factors to be considered may depend on how complex the business is and the circumstances leading to the decision to exit.
As management plans for an orderly transition to new ownership it is important to take the time to explore options so that the greatest potential return is achieved for the business. In the case where management and ownership is dominated by a single individual it is important to maintain a high degree of confidentiality with the process so that employees do not become insecure and unsure of the stability of the business and their jobs.
It is important to choose the correct successor and also how the transition to management of the business by the new owner is implemented. The review process includes a number of elements discussed in greater depth in this section of the site.
Exit Strategy Planning Steps
- Confirming the business’ strategic vision
- Creating the optimal scenario for the owner to leave the business
- Exploring the field of potential buyers
- Determining how roles are shared in the transition to new owners/managers
- Determining who will coach the new owners/managers
- Determining the value of the company
- Determining tax implications from the sale
