{"id":65,"date":"2011-02-03T05:22:21","date_gmt":"2011-02-03T05:22:21","guid":{"rendered":"http:\/\/www.shanecampbellcfo.com\/?p=65"},"modified":"2023-04-19T19:37:41","modified_gmt":"2023-04-19T19:37:41","slug":"exit-strategy-what-options-are-there-to-exiting-my-business","status":"publish","type":"post","link":"https:\/\/www.b2bcfo.com\/shane-campbell\/exiting-my-business\/","title":{"rendered":"Exit Strategy – What options are there to exiting my business?"},"content":{"rendered":"

Last month I discussed the concept of having an exit strategy, or what we refer here at B2B CFO\u2122<\/strong><\/span> as Finding the Exit\u2122<\/a>. <\/strong><\/span>The point was that no matter how you look at it, each of us will eventually exit our businesses. The exit can be the result of a sale, bankruptcy, a gift to heirs, poor health, or a speeding bus \u2013 you get the picture.<\/p>\n

Since a typical business owner\u2019s net worth is usually tied up mostly in his\/her closely-held business, it stands to reason that the exit event should be carefully considered and preferably crafted by experienced professionals so the business owner can achieve their exit goals.\u00a0 So what are the options?<\/p>\n

There are several options for exiting your business. But which one is best? It depends on what your goals are. The options include:<\/p>\n

    \n
  1. \n
    Sale to a third-party (most common)<\/div>\n<\/li>\n
  2. \n
    Private equity (\u201cPE\u201d) recapitalization<\/div>\n<\/li>\n
  3. \n
    Employee Stock Ownership Plan (\u201cESOP\u201d)<\/div>\n<\/li>\n
  4. \n
    Management buyout (\u201cMBO\u201d)<\/div>\n<\/li>\n
  5. \n
    Gifting (to heirs, charity, etc)<\/div>\n<\/li>\n<\/ol>\n

    The first two choices are categorized in John M. Leonetti\u2019s Exiting Your Business, Protecting Your Wealth<\/a><\/em><\/strong>, as external transfers. External transfers generally provide for higher selling prices, but have disadvantages as well.<\/p>\n