Power Up

Archive for July, 2010

Even if the business is doing great for so many years, the owner must still not forget to think of an exit plan. There are many possible reasons why owners exit their businesses. It can be due to partnership disputes, illness, family issues, retirement and even burn out. Not all businesses whose owners have exited are failing. In fact, many successful businesses are turned to or sold to its new owners everyday.

There are many possible options for business owners to exit their company. The option no business owner would definitely want to take is exiting their business because of an accident, illness or death, yet, unfortunately, many businesses lose their owners this way. Closing down the business is also an option not many business owners would want to take. This is because closing a profitable business is not only idiotic, it also doesn’t make any sense. In addition to this, many employees, vendors and costumers will also be affected by this kind of exit plan. Succession, on the other hand, is something many business owners choose as their exit plan. Choosing a family member or a key employee to be the next leader of the company can be a good option because they already know the business, its employees, vendors and customers.

Selling the business is also one of the great exit options for a business owner, especially if there is no qualified successor. Not only does selling the company allow the owner to decide their ideal timing of selling the business, it also allows them to maximize the value of their business.