When it comes to Business Exit Strategy, there is a general saying – “the most important time in the life of a business is before the first sale”. It means, first of all, do not forget about the need for having your business plan. You should also be prepared for different financial scenarios and estimate the amount of funds you will need to launch and maintain your business in the future. Business exit strategy is a plan that tells you when to leave your business and how to do it.It is also a plan that shows what you need to do to get a high return on your investment.Here are some of the most common business exit strategies:1.Selling the company:- The most common exit strategy for a business owner is to sell the company he launched. That way, he will transfer the ownership of the company and the liabilities for the debts. The price of the transaction should be high enough so that the business owner receives sufficient funds to repay his debts and still have money to invest in other ventures or secure his financial future.
It is important to note that when you sell your business, you also transfer your clients and customers. This is why you should have a plan that outlines the steps you need to take to transition your customers to the new owner of your business.2-Business merger:- If you want to get out of your business, you might think about merging it with another company. In this way, you will continue in your role as a business owner, but you will be able to sell some of the assets of your company or receive additional capital to expand the business.3-Business liquidation:- The most extreme business exit strategy is liquidation. The owner sells all the assets of the company and pays off all creditors. Once the business is no longer operational, it is dissolved and the owner can keep all proceeds from the sale of business assets.4-Business succession:- Another way to get out of your business is to plan for succession. You can sell the business to a key employee and remain as a mentor to that employee. The business owner can also establish a family dynasty by selling the business to family members who have the same values and vision for the business.5-Business buyout:- If you want to sell your business, but you don't want to sell it to just anyone, you might want to consider a buyout. In this case, an investor buys out your share in the company, or you might want to sell partial ownership of your business. In either case, you will still be involved with the managing and operations of your business.
