New businesses come from unique ideas… new motivations… different reasons. Some people want to solve problems or help change the world. There are so many things a budding entrepreneur has to think about when starting their business. One of which is an exit strategy, and those motivations and ideas can influence what kind of exit strategy will be chosen.
There are different exit strategies that a company can turn to, and the best strategy depends on the entrepreneur’s goals for the company. So how do you choose which strategy works best for you, your business, and your investor? The following are things to consider when choosing an exit strategy:
1. Consider your future role in the business.
Do you want to continue managing your business? Will your team be playing the same roles before and after the exit? An Initial Public Offering (IPO) or a management buyout could be for you. Will your acquirer replace you and your team with their employees? A strategic acquisition could be your solution if ever the business would be struggling with succession-planning issues.
2. Evaluate your liquidity needs.
Sometimes exit strategies are opportunities