There are not many absolutes in owning a business, but there is one thing that is absolutely certain….all business owners will stop being business owners at some point…100%. Along with death or permanent disability, the following are routes for leaving your business:
Sale to one or more key employees.
Sale to one or more co-owners.
Sale or transfer to children or family members.
Sale to an Employee Stock Ownership Plan (ESOP)
Sale to a third party (full or partial).
Become an absentee owner.
Engage in an IPO.
Liquidate for asset value and close the doors.
As you would expect, there are advantages and disadvantages to each of these exit routes, and other than liquidation, each can require much planning and time to execute in a way that will accomplish all of your values-based as well as financial goals. Certain exit routes will lend toward a higher financial payout, while others afford more control for values-based goals like sustaining culture and care for employees.
We believe that it’s imperative for business owners to understand all available exit routes and the particular characteristics of each, and how they align or misalign with their goals for the future.
