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3 Business Exit Plans That Actually Work

If you have big ambitions for your company or you want to live life in your own terms and want your company to be something out of the world, why bother thinking about an exit? Theups and downs in the business are pretty common and quitting the business must be the last thing at the back of your mind. If you are thinking about growing your business, you must definitely plan for an exit. You must definitely plan and have an exit strategy. Some entrepreneurs look for further avenues after the startup phase is over because most of the thrill is over. If you are one of them, there are several strategies to choose from and it is absolutely important to choose the best one. Here are the business plans you can depend on while planning an exit.
1. Mergers and acquisitions (M&A)
They refer to either a large company purchasing a comparatively smaller one or two
companies merging together. A well known example is Google acquiring YouTube. The main
benefit of it is that your company is to be valued more during acquisition. You can also
negotiate the price of it since the buyer needs your company to earn huge profits. M&A give
an edge to the company over a competitor.
2. Initial Public Offering (IPO)
IPO means to sell a part of the company as stock to be traded on stock exchange. This
means that anyone can buy a part of your company. Going public means that the company
sells a part of itself for some extra cash. It can help founder get some investment in the
business. If you plan for an IPO, seek help of entrepreneurs who have done it before. IPOs
don’t always work out. Before choosing IPO, you should ask yourself if you want to sell a
part of your company and lose control over it.
3. Sell to a friendly buyer
If you finally want to sell your company, find a friendly buyer. This is a better strategy that all
others. You can sell it to anyone you please but selling it to a friendly person can be of help.
That person can be a key employee, a friend or a relative. Big downside of it is that they are
less objective. In such cases, the owner might not seek the best price.
This article has been contributed by Simmi Setia, Content Writer at LegalRaasta, an online portal for GST software, GST Return Filing, GST Registration, Section 8 company registration, Nidhi company registration, IEC registration.
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