The seven most common exit strategies available to business owners are a trade sale, a management buyout, private equity, family succession merger IPO and liquidation. Which one is appropriate will depend on your goals, your business and your timescales -each will have very different consequences on the sum you take from the business and what happens afterwards.

That’s the quick work-around, but there are so many options going to be an extremely big decision, so here is each choice to describe it simple.

Grasping the entire list of Exit Strategies For Business Owners Uk founders tend to reach is the primary stop on arriving at the best decision when and if the cold weather hits and know which choice to stockpile years before you really use it up.

1. The classic exit: selling to another company.

This is often a competitor or a supplier to the business or industry or a larger organisation within that industry. Trade sales tend to get good prices if they are strategically interesting access to your customers, your technology, your position in the industry. It is often the quickest way to a clean full exit.

2. Management buyout (MBO)

Here, your current management team takes over and purchases the business. This is a common form of exit if consistency is desired or if one trusts the already familiar team.

The only drawback is that this team might have to seek outside funding, leading to additional complications in structuring the transaction, and then is again likely to be easier to manage.

3. Selling to private equity

Private equity firms acquire companies they feel they can expand and then exit with a profit. This approach can be very appealing if you want to extract some value now but remain active, as in most private equity transactions you can remain invested and be part of the business as it moves through its next development phase.

This is suitable for owners who are not yet ready to fully exit.

4. Family succession

Transferring the business to the next generation ensures it remains within the family and that your legacy lives on. This may seem straightforward but it can also be the hardest emotionally and practically route to take. This comes down to planning and discussions, to understanding and preparation.

5. Merger

Merge your business with another. Two businesses together can often be bigger and stronger than you were alone. A MERGER may be the most appropriate approach if you think a premium for scaleor being part of a larger, combined operation makes more sense than an outright sale.

But, this often involves sharing control more than exiting completely.

6. Public listing

Floating your company on a stock exchange can create huge rewards, but is unusual, costly and challenging. IPOs are best suited to larger, fast growing companies with the size and capacity to thrive under the constraints of a public market this just isn’t an option for most small and middle-market entrepreneurs.

7. Liquidation

Sometimes the best solution is to bin the business and its assets for whatever value there may be and pay off any debts. This will usually realize the least but is the fastest solution for most owners Mostly where the assets are unable to be sold as a going concern.

Which one is right for you?

There’s no one best way as no one is one best way. The optimum path will depend on how much you are aiming to walk away with, whether the outcome you want is a clean exit or a smooth transition, how much weight you put on legacy and your people, and how far ahead you’ve planned.

And that last one is the most important: the earlier you plan, the more doors there are to choose from.

Frequently Asked Questions

What is the most common exit strategy for business owners?

A trade sale is one of the routes which gives a clean and full exit often with a strong valuation. But ultimately the best way is highly dependent on what you would like to do and what kind of business you have.

When should I start planning my exit strategy?

As soon as you can be – several years perhaps before you are contemplating leaving – since a lot of activities that will add value to your business will take time and be difficult to squeeze into the final months before a sale.

Can I exit my business without selling it?

Yes, one is family succession and another is just reducing your work load whilst keeping ownership, these are just ways of leaving one’s role that don’t necessitate a sale of the whole company.

Do I need an advisor to choose an exit strategy?

In such situation it is a wise idea, a very good financial adviser will assist you in comparing different possibilities, will guide your company through its preparations and will design the way out to your wealth will be safeguarded and even maximized.

If you are planning to exit, you had better call our staff right away.