B E N C H M A R K I N T E R N AT I O N A L
BUSINESS EXIT STRATEGIES
BENCH MAR K
IN T E RN AT I O N A L
B US I NESS EX IT S T RATEGIES Entrepreneurs embrace the effort and hard work required to establish a new idea, start-up or venture. However, one aspect that they often forget to think about is an exit strategy. It is not enough to build a successful business; the owner must think about how they will transition out of it, which is possible by considering the various exit strategies.
H A N D I N G O V E R TO FA M I LY
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Many entrepreneurs want to keep their business in the family as long as possible. Therefore, the transition plan entails grooming a member of the next generation to take up leadership and management responsibilities. While this route might seem the best way to preserve the business's legacy, it is also vital to consider the best person to run the business.
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MERGERS AND ACQUISITIONS (M&A) Through a merger or acquisition, the business either becomes part of or is bought by another company. Depending on how the deal is structured, the owner can end up with some involvement in the new arrangement or walk away without any further obligations.
When the time comes to transition, the interested parties may be the management or employees who already work in the business. This strategy can be a smooth one to implement and possibly provide flexibility for the owner's involvement.
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MANAGEMENT BUYOUT
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To l e a r n m o r e a b o u t t h i s t o p i c , v i s i t t h e Benchmark International blog.