Las Vegas Small Business – Exit Strategy and Succession Strategy
All Small Businesses must have Exit Strategy and Succession Strategy developed by Business Owners and Management Team!!
Exit Strategy means how the Owner is planning to leave the business and retire or do something else more enjoyable. Succession Strategy is a part of Exit Strategy. It is a part of managing the business.
Whether it is your Business or Personal Life, you need EXIT Strategy! Here, I will focus on Business.
EXIT Strategy should include: Succession strategy, Timing, Goals, Environment, Owner’s Health, Owner’s Desire to “Stop and Smell Roses”, Merger and Acquisition, Business Valuation, Role of Business Owner after business is sold, Legal Document, Tax Consequences, Tangible / Intangible / Intellectual Properties, Management Team, Existing Contracts / Leases / Litigation, etc.
Here is WHY you need EXIT Strategy:
- You need Vision and Goals about where you are now, where you want to go and how you will get there.
- Clear Picture of “Succession”: Who? When? Roles to be played? Duties? Decision Power?
- Maximize the Value of Business
- Provides criteria and guidelines for making operational business decisions
- Helps you make plan for “What to do next?”
- Gives you “Peace of Mind”
It is important to know that like any other strategies, EXIT Strategy needs to be reevaluated over time and modified for right reasons.
There are 6 major options for Exit Strategy:
- Merger And Acquisition: Your business merge with other business or your business is acquired by other business
- Go Public – IPO: Sell shares of your company by officially listing your company in Stock Market
- A Management Company manages your business for you
- Your friend or relative – family succession take over running the business
- Liquidation of the business and close out
- Management Buy Out
Business Valuation is dependent on Owner Dependency and Exit Plan.
Business has lower valuation if business continuation is dependent on owner participation. So it is very desirable to have Strategy that phases out Owner Dependency.
Small Business and Startup Owners always don’t know what they may need. But when need arises, it is better for Small Business and Startup to go to the known and qualified source to find solutions.
They will provide solutions for reduced owner stress and peace of mind, increased business valuation, better retirement plan, financial security for family members and improved personal wealth. Solutions Providers are experienced, qualified and affordable.
We will connect you to the right Small Business Exit and Succession Solutions Providers in our Small Business Solutions Shopping Mall who will help you reduce Founder dependency and define Exit Strategy.