Monday, March 16, 2009

Exit Strategy – It is inevitable

Do you have an Exit Strategy? No matter how long you think you are going to be with your business there is going to be a day that you will no longer be with your business. Either you live longer and survive your company or your company lives longer and survives you. Your separation from your business could take any one of the following forms:

  • You sell the business to an interested third party

  • You sell the business to an interested family member

  • You sell the business to employees

  • You plan for an untimely death by funding a life insurance policy.

  • You cease the business operation and convert all assets to cash.

  • You file Bankruptcy

  • Through the use of strategic buyers and buyers who are looking for vertical integration opportunities a business owner can maximize value on the sale of their business. Even unhealthy businesses that are looking for a quick exit due to a distressed economy in their industry can maximize value in the same manner.

    Any way you slice it, a business owner is much better off developing a strategic exit plan versus a seat of the pants exit plan which almost never maximizes value. It is a valuable CFO Service to help the business owner put together the well thought out exit strategy.