Exit Options

Exit OptionsAt the heart of a transaction is the transfer of ownership interests in the company. There are seven exit paths available to entrepreneurs:

  • Transition ownership to a family member
  • Sell to a co-owner
  • Sell to management or employees
  • Sell to a competitor, supplier, or customer already known to the entrepreneur (a company in your value chain)
  • Sell to a strategic buyer (a larger company)
  • Sell to a financial buyer (a private equity firm)
  • Wind-down the company and liquidate

All are viable options and, depending on the underlying fundamentals of the company and market forces, multiple options may be available for consideration. Based on the preferences, needs, and objectives of the business owner, the preferred exit option is selected. Each particular exit option stipulates a specific course of action and the skill sets needed on the transaction team.

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