An properly put together plan is the best way to help owners to successfully exit their business. Learn about the importance of planning ahead and how to choose the best strategy.
Business Planning and Exit Strategies
The scope of an exit strategy will depend entirely on who you want to take over the reins.
The ultimate relinquishing of such is often a staple and eventual goal present in the overall vision that’s built into a company’s roadmap.
You eventually want to step away – whether in exit to start your retirement, or to bow out from an industry, and let your brainchild grow to new levels in the hands of those who align with the business legacy you’ve always envisioned.
Regent Evolution is your premier advisor on business exit strategy. We will guide you through how an strategy to exit can help you find the right buyer, both in terms of value and certainty of a transaction. In addition a properly designed and executed exit plan will dramatically increase the probability that the buyer of your business will be the trusted successor who agrees with your vision and business philosophy. You can then take comfort in the knowledge they will take your business to new heights with their own brand of industry competence and experience as the driving force.
What is an Exit Strategy?
A business exit strategy sets out the key elements, objectives and options that are most appropriate and beneficial all parties looking to exit their investment in a business.
In simple terms, as the title suggests: it is a plan put in place by the owners, to step away from their involvement in the business by selling the entity to potential and vetted investors, or other interested companies.
But, why?
The primary reason for an exit plan is for an owner to reduce involvement, either because he or she is ready to retire or move on to other endeavours, and in doing so, make on sale the return they personally believe they deserve as recognition for all the hard work they have done to make the business the success that it has become.
What are the Key Elements of an Exit Strategy?
The elements to a successful exit aren’t so much a compiled formula of what to do and how, but rather a strategy to a sale.
Each strategy is an option that will guide the transaction to an outcome that will potentially benefit all involved. Here are just three possible business exit strategies:
After you’ve voiced your intention to exit, watch your inner circle closely – it may be that the people who work for you are interested in buying. This is a sound strategic option because they’re the people in the mix. The people on the ground. They know your business, they know your vision, and they’ll be the smartest potential buying group to ensure healthy growth.
Most importantly, they’re the buyers most likely to honour your business legacy and keep it on track to your vision in your absence, while implementing their own expertise and ownership style.
The merger or acquisition is the tried and tested sale strategy that is often a win-win situation for an owner wanting to sell, and similar companies with complementary skills wanting to merge. Bigger companies will see this option as a sound investment strategy, because it’ll effectively be a way to grow their revenue quicker.
Regent Evolution will oversee the intricacies of a successful merger or acquisition.
For many proud business owners, the dream of keeping the business a family one, is all-important.
This is an obvious way to ensure your business legacy meshes with your family legacy, to become something of industry legend.
If you have interested relatives, this, above all else, is the best way to an exit that won’t involve too much grooming and will ensure your name remains associated with the business, and the heights it reaches.
Regent Evolution will guide you on the path to a family transition that honours your name and legacy.
Are you ready to plan your successful business exit?
A business exit can be steeped in much emotion – a chemical reaction more explosive and volatile, in many ways, than other purely straight forward corporate transactions.
Acting sensitivity and always with your legacy and interests at the forefront, Regent Evolution will make the handing over of your business an exciting and prideful event.