When starting up and running a business, planning how to exit that business may not be at the forefront of your mind.
However, having a business exit strategy is an essential part of a well thought out business plan. The exit process can take time so it is good to have a business exit strategy in place early on and this may also help with the direction of the company.
It is important for owners to know when and how they want to exit the business. The form of exit will depend on the type of business owner/s and the type of business. While there is no one-size fits all approach and each company needs its own strategy, some common exit strategies include:
- Selling up – to co-owners or a third party
- Being acquired – selling control to a larger business/ competitor
- Liquidation – winding down the company
- Succession planning – passing on control to a family member
- IPO – going public
- Employee buyout
While having a plan in place is important, business exit strategies should still be flexible as circumstances and incentives can change as the business grows.
Our commercial team are able to assist in your business exit by ensuring the sale process is documented correctly and by providing detailed advice in respect of the conditions of sale and other related steps in the business exit process such as transfers of leases and other contractual commitments, including staff.