Exit path for business Owners

What Are The Different Ways You Can Exit A Business

An exit path is the route a business owner takes to successfully exit their business.

Many business owners are not sure of what path there are for them to follow and the popularity of each path.

So what are these paths?

About 30% consider this exit path.  It has a number of challenges. But the rewards and benefits can be magnificent.  With careful planning, this can be a very enjoyable experience for the business owner.

About 30% of business owners consider this option.

This has been a very successful path for business owners to take when selling their companies.

It reduces risk as you are selling it to somebody who knows and understands the business. Usually, one or more of the senior management team. This can also be known as an MBO or Management Buyout. It can also bring significant benefits to the owners who take it.

This is the most popular choice as about 60% of business owners are interested in this path.

There are different types of third-party sales, including trade sales, private equity Sales, part sales etc.

These are often the easiest and most rewarding option for business owners to take.

About 6% of business owners consider this option, although it is becoming more popular in Ireland.

This is usually considered by owners who wish to transfer their companies to known entities, keep their company’s culture and missions intact, and keep their companies in their local communities.

Surprisingly, 15% of business owners consider this option.

Liquidation is preferable only to death as a means to get money out of a business. This usually happens because no planning has taken place at all, so it becomes the only option there is.

This is starting to happen more and more now as there is nobody coming behind the owner to take over the business, and none of the employees wants the responsibility of the business.

So these are the options available to you as a business owner.

Which one is best for you?

Talk to us, and we can get a conversation going and help you pick the best one for your circumstances.

Leave a Comment

Your email address will not be published. Required fields are marked *