An exit plan is simply a plan for EASING OLD OWNERSHIP OUT, AND EASING NEW OWNERSHIP IN. Simple.
It is a plan where you can “Exit on your own terms”… not because you have to, but because you want to. This is a plan to get what you want and to know how to get it.
An Exit Strategy is not just about selling the business. There are options which don’t involve a conventional sale.
Some other options include:
- Management Buy Out
- Family Succession Planning
- Earn-out or partnership buyout
- Sale of some shares in Company
- Sell to competitor or supplier
- Part sale
A Simple and Necessary Exit Strategy Plan
An exit strategy is not necessarily complicated. At its heart, the exit strategy is merely a plan for exiting the business gracefully. Of course it should also allow you to exit to your own best advantage, which is why it is best to plan the exit strategy well in advance.
An exit strategy may involve:
- Planning for your financial well-being after exiting
- Preserving your stake in the business (if desired)
- Planning for succession
- Loyalty to existing employees
Planning ahead is the key to a good business exit strategy. If you had to leave your business tomorrow, could you do it? Those who have done a good job of planning will be able to answer that question confidently and affirmatively.