Every Business Owner Needs an Exit Strategy

The Bigger Picture In Selling Your Business

What should you do with your business when it’s time to move on?

Your hard work and determination have created a successful business, which you are rightly proud of. Your success has given you financial security but now you instinctively know that you need to step back.

If you wish to realise the full value of your business you need to find the right type of buyer. So, who are these buyers? Are there other alternatives to selling? Here we provide the eight main options open to you.

 1. Passing your business on to the people who helped build it

The company’s staff is often a crucial factor behind the success of a business and so, for some owners, giving the management team the opportunity to buy and run the business for themselves is an excellent option.

The existing management will almost certainly offer the safest possible hands for the business to pass into and this option rewards them for their years of loyal service.

A gradual handover, with the owner staying on for a while to provide a ‘steady hand’ as the management team takes control, is often the best way of steering the business through the period of change. This option is commonly referred to as a ‘Management Buy Out’ (MBO).

2. Keeping it in the family