Ways to Exit Your Business

There are eight ways to exit your business. They include:

  1. Intergenerational Transfer: Transfer of ownership to one or more members of your management team.
  2. Management Buyout (MBO): Transfer of ownership to one or more members of your management team.
  3. Initial Public Offering (IPO): Also known as going public, this involves selling shares of your company on a stock exchange.
  4. Merger: This involves merging your company with another to create a new, combined entity.  Under the terms of the merger, there may be provisions in the agreement to purchase a portion of your shares at closing, or perhaps all your shares over time.
  5. Hiring Management: This option involves hiring professional   management to run the business, with the owners withdrawing from day to day management of the company.
  6. Refinancing: You may be able to extract considerable cash from your business if you find a bank or other financial institution to lend money to your company.
  7. Employee Share Ownership Plan (ESOP): This involves selling shares to the employees of your company.
  8. Liquidation: Some businesses are worth more if broken up and liquidated than operated or sold as a going concern.

Which is right for you? Which will be of most benefit? With Covenant Consulting Group, we sit down with each business owner and review their plans, their goals and their history to uncover the right option, at the right time. Ready to schedule your visit with Covenant? We look forward to talking with you soon!