5 Business Exit Strategies For Startup Founders
Business Exit Strategies
For Startup Founders
Startup founders are always looking for the next business tycoon to be. Check out these business exit strategies for entrepreneurs and founders.
Exit strategies for a business
So you've created a successful business. Do you know what to do next?
After your startup flourishes, you're going to move on to other innovative ideas. But that means you need to have an exit plan for business.
With these 5 exit strategies for a business, you'll be moving on to the next challenge in no time!
1. Merger and Acquisition
The first exit strategy in business is arguably the most popular one among famous entrepreneurs: merger and acquisition.
In this scenario, you either merge with a similar-sized company to create a larger entity or get bought outright by a larger company. This is a popular move among business owners or entrepreneurs because everyone walks away a winner.
For best results, you should pursue this route at the height of your business valuation calculation.
2. Individual Sale
Despite its popularity, the merger and acquisition route isn't perfect for everyone. You might instead prefer to sell your business to an individual.
More famous entrepreneurs than you think prefer to buy existing businesses instead of creating something from scratch. If they buy your business, you can pay off debts and investors and start making plans for your newest business.
As a bonus, this approach is arguably the best way to retain the branding and feel of your original business instead of watching it change into something else entirely.
3. What is an IPO
Another method is to sell shares of your startup via a new IPO. This method has some real benefits but also some definite drawbacks.
For a successful business startup, this is the first step towards real financial security. You can raise funds for a business that results in additional growth and watch the value of your own shares continue to rise.
At the same time, the number of IPOs by year has declined significantly in the last 20 years. You may not want to take this really big gamble, especially when it means putting up with a gaggle of annoying shareholders.
4. Income Stream
One of the simplest exit strategies for a business is to not exit the business at all. In fact, all you have to do is exit the building!
If the business is really booming, you may not want to sell at this exact moment. Instead, you can leave day-to-day management to someone else and count your money as it comes in.
With that cash, you can pay off debts and start investing in your next business venture. If you can make it work, this is a great way to have your cake and eat it too: easy money now and new challenges later!
5. Total Liquidation
The final exit strategy in business is typically the last option among business owners or entrepreneurs: total liquidation.
Liquidation is relatively straightforward. You simply close the business down and begin selling everything that you can.
No young entrepreneur likes to liquidate, but it may be your only option if the market value dramatically shifts. Just make sure you explore all other possibilities before you choose to liquidate.
Exit Strategies in Business: Make the Call
Now you have options for exit strategies in business. But do you know who can make selling your business easier than ever?
We specialize in helping successful entrepreneurs "go out on top" and move on to the next challenge. Unleash the possibilities by selling your business today!
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Quick & dirty interviews, war stories & tips from the trenches of business acquisition, growth & sale. We aim for value, efficiency & fun, so you'll walk away with something useful to take with you along the journey of buying, growing & selling a business.
