Business owners often think about exit as an all-or-nothing event. For example, “Should I sell my company?” is a more commonly asked question than “How much of my company should I sell?” Yet in many situations selling only some of your business can achieve many of your exit goals, while leaving you owning a portion (and perhaps even a controlling portion) of your business. Here’s how.
To the surprise of many business owners, there are only four ways to exit from a company. One day, you will either pass your company to family members, sell to an outside buyer, sell to an inside buyer, or shut it down. Those are the only four possible exit strategies. Period. They are:
Too many business owners leave more cash in their company than is necessary. Surplus cash inside the company can cause present and future problems. Here’s how.
First, How Much Cash Does Your Company Need?
Business owners who aspire to sell their company to one or more employees or partners are usually excited by that possibility. Selling to an inside buyer, such as one or more of your business partners or employees, can be deeply rewarding. Long-term, valued co-workers become like an extended family to many owners. To see the company continue forward, under the leaders you selected and developed, ensures that your company continues forward in good hands, led by people who share your values.
Thoughts from a Game of Throne fan…
Whether you were a die-hard fan of HBO’s Game of Thrones, or you never saw an episode, likely you are aware that the most popular fictional series in television history recently ended in a manner that left millions of fans disappointed. (I am one of those disappointed die-hard fans.) In one crucial way, the Game of Thrones (GOT) ending offers an important insight for business owners getting ready to exit. Here’s how.
