In: Finance
EXIT STRATEGY
A business exit strategy is an entrepreneur's strategic movement to sell his ownership in the company to any other investor or another companies for making some substantial profit. Exit strategies are made through different ways. We can conider the best one relating to the situation inorder to make more better position. Exit strategy is very important because it makes one successful so the best exit strategy should adopted. This is actually the protection of wealth and other valuables.
There are mainly 5 Exit strategies
1. Management buyout
2.Outside sale
3.Employee stock ownership plan
4.Initial public offering
5. Transfer ownership to family
If I started a business my exit strategy should be Transfer the ownership to my family. There are some reasons behind this decision. This will help me to make continue my business in my families name. The the wealth of the business can be protected within the family and all future earnings are comes to my own family. This will ensure the legacy of my family. This could also make me a family successor and I can play a role of advisor to others.
But the one and only problem I can see here is sometimes may the family members are inefficient to conduct the business and they may have lack of knowledge and skill. But anyway I can help them and make them understand all the whole plans and how to succeed in it. This will create more value and makes more stable relations in life.
Thank you..