Begin with the end in mind…in other words; plan a graceful (and profitable) exit from the start. Family business succession planning is an often overlooked, but extremely important part of any businesses’ plan. This step of your business plan outlines your exit strategy. It may seem strange to develop an “up-front” strategy to leave your business, but potential investors want to know your long-term plans. Your exit plans need to be clear in not just in your own mind, but in a written document because they will dictate how you operate the company. For example, if you plan to get listed on the stock exchange, you’ll want to follow certain accounting regulations from day one. If you plan to pass the business to your children, you’ll need to start training them at a certain point.
Here’s a look at some of the available strategies for entrepreneurs and businesses for sale in Ohio:
Potential Exit Strategies for your business plan:
Merge: Sometimes, two businesses can create more value as one company. If you believe such an opportunity exists for your firm, then a merger may be your ticket to exit. If you’re looking to leave entirely, then the merger would likely call for the head of the other involved company to stay on. If you don’t want to relinquish all involvement, consider staying on in an advisory role.
Be acquired: Other companies might want to acquire your business and keep its value for themselves. Make sure the offered sale price meshes with your business valuation. You may even seek to cultivate potential acquirers by courting companies you think would benefit from such a deal. If you choose your acquirer wisely, the value of your business can far exceed what you might otherwise earn in a sale.
Sell: Selling outright can also allow for an easy exit. If you wish, you can take the money from the sale and sever yourself from the company. You may also negotiate for equity in the buying company, allowing you to earn dividends afterwards — it clearly is in your interest to ensure your firm is a good fit for the buyer and therefore more likely to prosper.
Talk to Ohio Business Coach, Ralph Berge about planning to exit your business
