B E N C H M A R K I N T E R N AT I O N A L
BUSINESS: CHOOSING THE RIGHT EXIT STRATEGY
Benchmark International
BENCH MAR K
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IN T E RN AT I O N A L
BU SI NE S S : C HO O S I NG THE RIGH T E X I T STRATEG Y When thinking about selling a business, it takes time to develop the right exit strategy. There are a range of possible exit strategies to choose from depending on the objectives of the seller, including:
MANAGEMENT BUYOUT A management buyout is when the business is sold to the next generation of leaders within the company. The typical way to finance this type of transaction is through a combination of private equity and debt investment.
S T R AT E G I C A C Q U I S I T I O N In a strategic acquisition, a business is purchased in its entirety by another company, usually using a combination of cash and stock. Acquiring firms may or may not retain existing management teams and will take over operational control, meaning they could make substantial changes.
An Employee Ownership Trust, or EOT, is a special form of employee benefit trust. It was introduced by the UK Government in 2014 to encourage more shareholders to set up a corporate structure similar to the model used by department store chain John Lewis. The aim of such a corporate structure is to facilitate a wider employee-ownership via an indirect holding.
Benchmark International
EMPLOYEE OWNERSHIP TRUST (EOT)
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You can read about the importance of choosing the right exit strategy by visiting the blog of Benchmark International.