A business often must include a comprehensive exit strategy prior to obtaining financing. While this feels like a negative exercise, it’s an important planning event to demonstrate to the business owners, shareholders and potential investors that the business has considered all positive and negative contingencies.
For example, a business may find itself in a position where its current capital levels will not sustain future operations and financing options are not available. Alternatively, a business may find itself in a position where it has achieved full profit maximization and the owners just wish to “cash out”. The goal of the exit strategy is to minimize/eliminate any further business losses or to monetize the time, efforts and money invested to-date in the business.
We have experience in and will assist your business in the following exit strategies:
Sale of Assets Sale of your assets do not need to include all your balance sheet assets. You may discover that a portion of your assets, product line or technology is no longer in line with your core technology vision/direction of your company. Trimming off these extraneous assets is one method to refocus the company and derive the monetary benefits from its removal.
Strategic Acquisition/Mergers Small businesses may consider acquiring other small businesses utilizing strategies such as horizontal product strategy, vertical integration strategy, human capital acquisition method or new technology acquisition strategy.
Dissolution or Bankruptcy
Please note that dissolution or bankruptcy doesn’t just happen to your business; it can happen to your customers and your suppliers. Make sure you know your rights if these unforeseen circumstances arise.