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.