Best Business Exit Strategies for Entrepreneurs

Posted On July 27, 2023

Creating and managing a business requires a lot of hard work. While you must have spent most of your life thinking about the growth and success of your organization, you must also think about your exit strategies as you near your retirement days. Most people give their business to their children or other family members to pass on their legacy. 

Planning the exit strategies for your business requires much consideration. It is important to think about your business’s long-term goals and keep it financially stable in the market. After all, you have worked hard towards it. If you are confused about what to do, consulting with professionals providing business services in Palm Beach Gardens can help you explore your options. 

Best business exit strategies for entrepreneurs 

• Sell to a new owner. 

One common exit strategy business owners use is selling the business to a trusted person, perhaps their sibling, trusted family member, or a friend. It allows for a smooth business transition and protects your family’s legacy. The advantage of selling your business to someone you already know is that they are passionate about it. Therefore, you can rest assured that you will be giving it to the right person. 

• Merger and Acquisition. 

The acquisition is an exit plan where the business owner sells their running business to someone else. Merger refers to partially liquidating and merging the business with a new or existing company. 

Merger and Acquisition refers to combining two companies through merger or acquisition. This is often practiced by huge companies to grow their profit. It is considered extremely beneficial because the other company already has the skilled employees to efficiently run the business without ruining it. 

• Become part of an “Acquihire.” 

An Acquihire differs from the traditional Acquisition discussed in the previous point. An Acquihire is when another company buys out your company or business simply to acquire the skills or talents of your employees. 

While this strategy does not continue your legacy, you will be able to take care of your employees even after your retirement. Remember that you may need to discuss the terms of the Acquihire with your employees since it will be impacting their life and career. 

• Liquidate and close business. 

This is often kept as a last resort or when owners believe their business is better off being closed. Liquidation is a strategy where the owner keeps paying themselves using the business funds and eventually closes it when the funds run dry. Then, they sell the remaining business assets and get a paycheck to maintain their lifestyle.