As the owner of a successful business the prospect of selling may not have always been the goal since you made your first dollar.
In fact, in the early years, the vision for your business was probably somewhat myopic – priorities being in the building (or survival) of it, not its sale eons into the future.
But, if you’re reading this, that’s most likely changed.
Your business is now probably a self-sufficient, living, breathing entity – one you’ve taken from nothing to something quite remarkable.
And so, whether it is because you’re ready to move on, take your retirement, or simply handover control to those you’re sure can take it to even greener pastures, you’re now ready to exit.
This is somewhat of a serious mission, though, because you’ve now seen that an exit strategy can effectively help your business grow. It’s the start of setting it up for a future that may be without you, sure, but one where it will be able to sustain itself on the basis of your legacy.
Let’s take a look at the concept of the business owner exit strategy, and which one might be right for you, to propel you toward a profitable exit.
How Do I Exit My Business?
There are options that cater to different owners, their vision, and what they need to close the sale.
Here are the most common:
External – The Third-Party Sale
This is the art of prospecting for outside entities that may be able to both absorb your business and give you the price you seek for it. Because, after all, your purpose for selling will most likely be to secure your financial future.
But there’ll be an emotion tether, too. Your business is your creation, and you want to see it live on, often indefinitely. So, the stringent vetting of potential buyers and outside parties is a vital part to this route.
There are three third-party sale strategies:
Mergers and Acquisitions
The sale of your business to an outside enterprise that looks to absorb it, add your capabilities and skillsets to its own, for possible expansion into new sectors and areas of expertise.
The sale of all or part of your business to an investor with the view to securing outside capital, relinquishing some control and with another possible acquisition or merger later.
Internal – The Family Transition
This exit strategy, while focused on keeping the business in the family and ensuring future strength for your legacy and potentially provide liquidity for your retirement or next venture.
If you’re lucky enough to have qualified family members, this option goes the distance in guaranteeing that the business you’ve built becomes the heritage on which your people can sustain themselves for years to come – including you.
Internal – Management Team Ownership Transfer
Again, this exit strategy is rooted in the establishment of your legacy.
Transitioning your business to the right-hand men and women you’ve trusted most over the years, can provide you with much peace of mind when you’re looking to step down. You know it’s them that have shared your vision, and you know it’s with them that the culture and ethics you’ve woven in, will be maintained in your name.
But you maybe be wondering, ‘…how do I engage my management team in this discussion?’
Communication is always key – and the Destined team is expert at evaluating, communicating and working through the steps to effectively transition the ownership of your business. And if access to capital is limited, Destined can help them get the ball rolling, and put measures in place toward meeting your exit expectations, and their prospects as new leadership.
So yes, it’s time to sell. And whatever it is you’re looking to achieve – a secure future for you in your golden years, an evergreen business legacy, or to keep your empire in the family – we can help you achieve your dream, because we’re Destined, and so are you.
Click here to learn more about M&A sell-side success from Destined.