In technical terms, exit strategy refers to a situation when an entrepreneur thinks about disinvestment in the company that he/she founded. An exit strategy is made in order to eliminate the stake in that business and make profit if the company has surged and eliminate any kind of loss if the situation is the other way round. Ideally the exit strategy is devised into the business plan because the functioning of the business would depend on the choice of the exit plan. The most common type of exit strategy is strategic acquisition while there are others that can be used according to the situation. The kind of exit strategy that one chooses depends on various factors like control, ownership, expansion or paycheck. Different kinds of exit strategies will result in different returns at a given period of time. Thus I am going to suggest you 4 business exit strategies that would help you in order to maximize your gains.
The all rounder
There are some kinds of companies that focus on only one aspect of the business and think that the others will sail in the same direction by themselves. However, by doing so they tend to increase the risk of the business and this may reduce the chances of being acquired. So make sure that you are desirable and at potential in all the departments as no company would want to acquire a venture that adds insecurity to their business.
Sophistication
A venture must be sophisticated enough to handle all its activities and it should make optimum utilization of the resources it can afford. They must invest in mature systems and technologies that will not only make the work atmosphere organized but all add a touch of elegance to it.
World class organizations
Make sure that you have something that makes you capable enough to be the big fish in the whole wide world, that your employees are world class and you offer something that is unbeatable and you will have everyone rushing for you. CEO’s need to make sure that each and every department takes a systematic approach and if there are some problems, they can be addressed immediately.
Know where the money is
The financial aspect is as important as the product aspect in case of most of the acquisition until and unless you have something that no one has been able to attain. Therefore, getting your financials right is of prime importance. If the acquiring company cannot know about your financial status from your books, they might make a low ball offer and reduce your chances of being acquired.
So focus on each and every are so that you can get the best deal for yourself as well as stakeholders and that will eventually help your chances of having a smooth exit.
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.
The all rounder
There are some kinds of companies that focus on only one aspect of the business and think that the others will sail in the same direction by themselves. However, by doing so they tend to increase the risk of the business and this may reduce the chances of being acquired. So make sure that you are desirable and at potential in all the departments as no company would want to acquire a venture that adds insecurity to their business.
Sophistication
A venture must be sophisticated enough to handle all its activities and it should make optimum utilization of the resources it can afford. They must invest in mature systems and technologies that will not only make the work atmosphere organized but all add a touch of elegance to it.
World class organizations
Make sure that you have something that makes you capable enough to be the big fish in the whole wide world, that your employees are world class and you offer something that is unbeatable and you will have everyone rushing for you. CEO’s need to make sure that each and every department takes a systematic approach and if there are some problems, they can be addressed immediately.
Know where the money is
The financial aspect is as important as the product aspect in case of most of the acquisition until and unless you have something that no one has been able to attain. Therefore, getting your financials right is of prime importance. If the acquiring company cannot know about your financial status from your books, they might make a low ball offer and reduce your chances of being acquired.
So focus on each and every are so that you can get the best deal for yourself as well as stakeholders and that will eventually help your chances of having a smooth exit.
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.
Comments
Post a Comment