Have you thought through your potential exit outcomes and what each means to you
Part of the formula for achieving your euphoric exit event one day, is years prior, knowing what your potential exit scenarios could be. It’s not required that you know exactly which of your options will be the one you ultimately select, but in preparing for the future event, it is important you know what the options are so you use time as a friend in thinking each option through as each may require unique planning and preparation steps.
Here are the most common outcomes we help owners think through and identify the pros and cons of each as it relates to their desires and personal situation:
- Sell the business to a third party
- Sell the business to the management team
- Sell/transfer the business to the next family generation
- Set up an ESOP plan
- Liquidate the business (taking the value out of the business over time versus a single event)
- Hire a CEO (maintain ownership in your family but eliminate daily involvement)
You don’t want the day to arrive and you want to exit your company only then to begin thinking your options through. By then, your options will be fewer and regret will kick in that you didn’t do better planning. Get help thinking about your personal options and use time as a friend in their planning.
