What is a business exit strategy?

 

An exit strategy is a plan for the future of your business when you want to leave your business.  It describes the form of transition.

Explain your business exit strategy

A good business exit strategy is easy to understand, remember, and apply.

This means your business exit strategy should be:

  • Clear and concise – an effective way of communicating the key points of your plan.
  • Easy to remember – so you can refer back to it frequently during times of uncertainty or stress when making decisions about your business’s future.

Define your goals and timelines

  • The first step in creating your exit strategy is to define the goals you want to achieve with it and when you’d like those goals to be reached.
  • Define the business value of your company. Once you’ve defined what success looks like for your business, both parties must have an understanding of what exactly makes up its value–this includes tangible assets (such as equipment), intangible assets (like intellectual property), and intangible liabilities (such as debt).

Explore alternative exit strategies

The best way to find a buyer is to advertise your business for sale. You can do this by placing an ad in the local newspaper or Craigslist. Still, hiring a professional broker specializing in selling small businesses is much more effective.

A private equity investor may also be interested in buying your company if they think they can turn it into something bigger than what it currently is. The downside is that you will get less money from them because they’re looking for long-term gains rather than short-term ones like venture capitalists do (see below).

Venture capitalists are another option when exploring alternative exit strategies. They’re often willing to invest large sums of money into startups and growing companies so long as there is potential for profit down the road; however, these investments tend not to be as lucrative as selling outright due to their high-risk nature.

 The main benefits of a business exit strategy

  • Having peace of mind for making your business profitable after exit strategy
  • Selecting the best timing
  • Protecting the value of the business
  • Creating a transition for your management team
  • Generating income for and high rate of return to investment
  • Guiding the direction of your company to the future
  • Giving you a timeline to work within
  • Making you a space for capitalizing on an active market
  • Saving you plenty of time and money
  • Taking control of your life and business
  • Minimizing or eliminating capital gains taxes

Thinking about your business exit strategy? Let’s guide you.

The components of a business exit strategy PurpleZ considers:

  • Owner’s Goals and Objectives
  • Business Valuation
  • Value Analysis
  • Value Enhancement Opportunities
  • Exit Options assessment
  • Strategic Timing
  • Tax Calculation
  • Recommendations

 What happens when your plan to exit on your own?

Whether you plan to exit or have to exit, you need experts to direct you to the future of your business. PurpleZ, as a top business consultant and marketing agency in Irvine, helps you in this regard.

But if you do this on your own, you cause an irreparable failure:

  • Losing control over the process
  • Paying too much in taxes
  • Suffering stress and anxiety
  • Failing to realize all your business and personal goals
  • Losing the value of your business
  • Wasting time and money
  • Losing a great deal of income
  • Losing your employees and disorganization of the management team

PurpleZ can help you with your business exit strategy

Our goal is to ensure you are prepared for whatever comes your way. We will work with you on creating a plan for selling all or part of your company and helping with any other tasks related to an exit from the company (including finding new buyers, handling negotiations, and more).

PurpleZ implements exit strategies, ranging from selling to merging your business, best suited to your business goals. Our experts measure all the necessary elements initially, then recommend you to leave from or stay in your business.

Want to make an appointment with our consultation team? Contact us online and call us at +1 (800) 213-7303