A cardinal rule of exit planning is to create a strategy to preserve the growth and legacy of a business. But with a number of options to select from, a business owner needs to carefully choose his path. Generational Equity helps middle-market businesses seeking investors or full buyers.
When planning and executing an exit strategy, business owners and investors should be aware of their specific circumstances and priorities. Once these have been carefully aligned with the proposed approach, they can choose the best solution that will enable a successful transaction. The latter can be properly evaluated by the benefits it provides the company and its shareholders, as agreed upon by both seller and buyer.
The best way to choose an exit strategy is to understand the basic benefits of each option and how they fit the company’s situation and the current owner’s financial and lifestyle needs. If immediate liquidity is required, then a full sale to a third party is the preferred method. However, if the owner(s) plan on being retained, a partial sale to a private equity firm is the way to proceed.
It pays to plan ahead. If you know about us, you know we help companies plan and have actionable backup plans. Exit strategies should be crafted early in the life cycle of the business. Business owners who are uncertain about the future of their business should consult Mergers and Acquisition (M&A) specialists, who thoroughly evaluate companies undergoing transition and advise them on the most profitable methods to use.
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