If you have been managing your business for a number of years now you might be considering an exit strategy. But doing so takes planning. How will you get your money out of the business? How much will you take out? Will you liquidate company assets or transfer ownership to someone else? How long do you intend to stay engaged in the company's daily operations? Will you be able to relinquish control to others? If you take the time to deliberate, you will be in a better position to choose a reasonable — and profitable — exit option.
Other exit strategy options include acquisitions, mergers, and, in rare cases, taking the company public through an initial public offering. Regardless of the strategy you select, assembling a team of impartial and experienced advisors is essential. At a minimum, the advisory team should include an attorney skilled in business sales and your accountant who can prepare accurate financial statements and assess tax implications. Other professionals who could provide value to the process include real estate agents and valuation consultants.
If you plan to sell the business, make the transition as smooth as possible. New owners will want assurance about the firm's long-term financial viability and insight into assumptions behind the numbers. In the build-up to the transition, make every effort to ensure that key relationships remain intact, vendors stay committed, and customers keep coming back. If you have questions as you go through the process, please call. We can discuss the details together.
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