Uploaded on Dec 1, 2021
Planning to leave your business can be emotional as well as overwhelming. Planning a proper exit strategy requires diligence, time and care. Business owners often dream about taking more personal time off or at least work few hours each day/week, etc.
Align Corporate Advisors--EXIT Planning
ALIGN CORPORATE ADVISORS
We Provide Expert Services for Mergers and Acquisitions
https://aligncorporateadvisors.com/
Align Corporate Advisors:
EXIT Planning
Planning to leave your business can be emotional as well as
overwhelming. Planning a proper exit strategy requires diligence, time
and care. Business owners often dream about taking more personal
time off or at least work few hours each day/week, etc.
Align Corporate Advisors:
EXIT Planning
If you plan to exit from your business, choose your
options:
Closing vs. Selling
1) Liquidate and close the business.
It’s hard to shut down the business you worked so hard to build, but it may be the
best option to repay investors and still make money.
There are two main ways to liquidate your business:
Paying yourself until your business funds run dry, and then closing shop. The
benefit to this method is that you will still get a paycheck to maintain your
lifestyle. However, you will probably upset your investors (and employees). This
method also stunts your business’s growth, making it less valuable on the
market should you change your mind and decide to sell.
Close up shop and sell assets as quickly as possible. Simple, and happens very
quickly, the money you make only comes from the assets you are able to sell.
These may include real estate, inventory and equipment. Additionally, if you
have any creditors, the money you generate must pay them before you can pay
yourself.
Align Corporate Advisors:
EXIT Planning
Align Corporate Advisors:
EXIT Planning
2) Sell to a new owner:
Selling your business to a trusted buyer, such as a current employee or
family member. Ideally, the buyer will already share your passion and
continue your legacy.
However, there are downsides to selling your business to someone you
know. Your relationship with the buyer may tempt you to sell the business
for less than what it’s worth. Passing the business to a relative can also
potentially cause familial tensions that spill into the workplace.
Instead, you may choose to target a larger company to acquire your
business. This approach often means making more money, especially
when there is a strong strategic fit between you and your target. The
challenge with this option is the merging of two cultures and systems,
which often causes imbalance and the potential that some or many of
your current employees may be laid off in the transition.
Align Corporate Advisors:
EXIT Planning
Align Corporate Advisors (ACA)
Address: 1300 Ridenour Blvd, Suite 252 Kennesaw, GA 30152
Email ID: [email protected]
Phone NO: +1 (678) 831-2285
Website: https://aligncorporateadvisors.com/
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