Checklist of Major Exit Options in Business

Here are 6 of the most common exit strategies for you to consider in detail:

  1. Sale of the business in the usual manner:
    Here individuals or another organisation buys the business. You will have to find a willing buyer to take the business over and you will receive your cash on settlement.

  2. Buy-out of the company or corporation by shareholders or management:
    This results in one or more of the shareholders or management buying out other shareholders. You have to make sure the buyers have sufficient cash for the buy-out, and the result will be cash received by you, as the owner, or by present shareholders.

  3. Trade sale or acquisition:
    Here another company or organisation buys the business outright in what is known as a trade sale. The “fit” has to be appropriate with the management changing and the present corporate identity may disappear. The current shareholders will receive cash or shares and a management contract can be negotiated for current managers.

  4. Merger with another company or business:
    This involves joining your company with an ex...

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