{"id":6169,"date":"2023-11-07T12:22:23","date_gmt":"2023-11-07T12:22:23","guid":{"rendered":"https:\/\/fusacq.ca\/?p=6169"},"modified":"2023-12-15T14:31:51","modified_gmt":"2023-12-15T14:31:51","slug":"what-are-my-exit-strategies","status":"publish","type":"post","link":"https:\/\/fusacq.ca\/en\/what-are-my-exit-strategies\/","title":{"rendered":"What Are My Exit Strategies?"},"content":{"rendered":"<p>Entrepreneurs often ask themselves what their alternatives are for \u201cexiting\u201d their business\u2026 Do I already have a succession plan? Is the plan already in place? Family members? Members of the management committee? An outside sale? Do I know the market value of my business?<\/p>\n<p>On the other hand, we can group them into broad families to assess the advantages and disadvantages:<\/p>\n<ul>\n<li><b>Internal succession.<\/b> This is the preferred option of most entrepreneurs. Whether it&#8217;s a family member or a managerial employee\u2026 this avenue ensures a logical continuation of operations, for customers and suppliers. These cases are not always possible, however \u2013 the company typically doesn&#8217;t have the space to prepare its succession \u2013 there are few governance roles in the company \u2013 the shareholder doesn&#8217;t always want to make way. The succession doesn&#8217;t always have the means to buy. The entrepreneur who wishes to proceed by this route, will end up financing more than if the transaction were to go outside interests. Not everyone can afford to be the banker of the transaction.<\/li>\n<li><b>Sale to an individual.<\/b> For an SME-sized company, this avenue is frequently used. The vendor\u2019s cash-on-closing from the transaction is higher even though there is always a balance of sale remaining. The risk is often more at the operational level, where the seller had defined his role according to his skills and personality \u2013 it&#8217;s a safe bet that the buyer won&#8217;t be the identical replica in terms of his day-to-day role for the company. We&#8217;ve heard vendors fear for the future of their company when the buyer wanted to be less operational and more strategic \u2013 for them, it was inconceivable to let go the daily aspects!<\/li>\n<li><b>Sell to another company.<\/b> This is the avenue that brings the most consistency in terms of maximizing value, compensation, and continuity. The biggest change comes at the organizational level. The buyer will want to integrate operations and achieve efficiency gains. Current managers may be called upon to change role, location or, in some cases, reposition themselves.<\/li>\n<\/ul>\n<p>Choosing who you want to sell to may be a preferred option\u2026but with over 90% of businesses having fewer than 50 employees \u2013 that choice isn&#8217;t always possible\u2026<\/p>\n<p>Most entrepreneurs are very comfortable with the day-to-day or tactical activities of their business. For more strategic activities \u2013 buying or selling a business, mergers, or partnerships \u2013 many entrepreneurs call on advisors to help them establish their objectives and strategies, and to support them in executing their plan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Entrepreneurs often ask themselves what their alternatives are for \u201cexiting\u201d their business\u2026 Do I already have a succession plan? Is the plan already in place? Family members? Members of the management committee? An outside sale? Do I know the market value of my business? On the other hand, we can group them into broad families [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[87],"tags":[],"class_list":["post-6169","post","type-post","status-publish","format-standard","hentry","category-selling-your-company"],"acf":[],"_links":{"self":[{"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/posts\/6169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/comments?post=6169"}],"version-history":[{"count":1,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/posts\/6169\/revisions"}],"predecessor-version":[{"id":6170,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/posts\/6169\/revisions\/6170"}],"wp:attachment":[{"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/media?parent=6169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/categories?post=6169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fusacq.ca\/en\/wp-json\/wp\/v2\/tags?post=6169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}