Exit Planning, Solutions & Management (EPSM)
What are the reasons for entrepreneurs / shareholders to perform an Exit?
There are several practical reasons why entrepreneurs make an Exit.
However, it is important to know that each and every Exit target, must be accompanied by the right Exit strategy.
Following the years, via our investment division, we met company owners who seek for investment under a partial or complete exit strategy.
We have gathered below the main reason entrepreneurs are looking to make an exit:
A loss of interest in the business – many entrepreneurs love the art of a new startup, but following some years of activity and following their long term experience in the business, they are ready for the “next challenge”, eager to start a new business and their new business adventure.
Market changes and losing track of the new technology – The market is changing all the time, while new technologies appear and “old - traditional” businesses stay behind.
It’s time to look for a way to exit your business and try to optimize the profit before it will be dissolved.
Financial situation – The business gained success and got a lot of potential, but is struggling with financial difficulties.
The owner in such a case, requires a new solution, financial support and “new blood” into the system. In many cases, they will face a challenge to bring the company towards eligibility for an exit (In which MCBA team can contribute and support as well)
Health issues – At some point, the company owners may face deteriorating health, which is not allowing them to perform in their actual business.
In many cases, the business requires the direct involvement, performance, and activity of the shareholders to continue and grow.
Retirement – the owners feel that their age is not suitable any longer for this specific type of business they are operating in. For them, it is marked as the finish line and it’s time to move on.
No Next generation – the company initiators may have performed successfully throughout the years, but it’s about time to finish and relax. However, when the next generation, is not there or not willing to continue the business, the owners face a situation to lose the fruits of a great business without any continuation.
In all the cases we mentioned above (and more) an Exit can be a wonderful solution, but only when it’s done in a professional manner that will protect the seller and create an optimized profit scenario both on the immediate and long run.
In some cases, an Exit process can be also done partially (by selling a minority / majority part of your shares), it is not an obligation to leave / disconnect from your business.
There are options to continue and stay an active party within your company’s operational activities or to Exit totally.
If you feel one of the scenarios above match your situation and you seek to exit from your company, contact us to see how we can assist you.