Exit Planning Options

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There are a wide variety of ways an owner can exit a business.  Sale of the entire business to an outside party is just one option.  The following is a fairly comprehensive list:

• Sale of the business to an outside entity, either known or unknown to the owner
• Sale or gift to family member(s)
• Sale to another shareholder/partner/member
• Solicitation of a new minority or majority investor/partner
• Merger with or acquisition of a competitor, supplier, or customer, or other company with complimentary products and services
• Recruitment and/or development of personnel and systems to replace the owner in part or in full
• Current management buyout or outside manager buy-in
• Creation of an Employee Stock Ownership Plan (ESOP)
• Franchising or licensing
• Managed close down
• Liquidation
• Shut the doors and walk away
• Bankruptcy

Needless to say, these options vary dramatically across a number of factors important to most owners, such as

• Realized proceeds from the transfer
• Continuation of the business to provide jobs, serve customer and preserve the owner’s legacy
• Desire to reward loyal employees
• Professional satisfaction for the owner.

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