Business exit strategy presentation
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The document discusses different exit strategies for business owners looking to transition out of ownership of their company. It outlines several options for exiting a business, including transitioning the company to become a lifestyle business, selling the company through an acquisition, transferring ownership to a family member or emotional partner, pursuing an initial public offering to sell shares on the stock market, or liquidating the company's assets. For each option, it provides brief highlights of potential pros and cons to consider when selecting an exit strategy.
Business exit strategy presentation
- 1. Name of presentation Company name More Free PowerPoint Templates at SmileTemplates.com
- 2. Business Exit Strategy …a strategic withdrawal THE PLANNED EXIT OF AN OWNER FROM BUSINESS In entrepreneurship and strategic management an exit strategy, exit plan or strategic withdrawal, is a way to transition one’s ownership of a company or the operation of the some part of the company .
- 3. Steps of Exit EXITING BUSINESS, PROTECTING WEALTH
- 5. Personal Readiness Test FINANCIAL READINESS Total amount of investable asset MENTAL READINESS Plan for post-exit days
- 6. Choose The Optimal Exit Option Lifestyle Company Acquisition Transition Ownership to Emotional Partner Initial Public Offering (IPO) Liquidation
- 10. Acquisition A CORPORATE ACTION IN WHICH A COMPANY BUYS MOST, IF NOT ALL, OF THE TARGET COMPANY’S OWNERSHIP STAKES IN ORDER TO ASSUME CONTROL OF THE TARGET FIRM. Pros Strategic value Enjoy optimum value Multiple bidders Price to the stratosphere Cons Acquisitions are messy and often difficult when cultures and systems clash in the merged company.
- 12. TRANSITION OWNERSHIP TO AN EMOTIONAL PARTNER… Someday, my son, all this will be yours…
- 13. Transition Ownership To An Emotional Partner PASSING OWNERSHIP TO ANOTHER TRUE BELIEVER WHO WILL PRESERVE YOUR LEGACY. Pros Less due diligence required Emotional satisfaction Cons Selling to family can tear the company apart with jealousies and promotions that put emotion way ahead of business needs.
- 14. EMPIRE… AS A GIFT ANY FAMILY BUSINESS THE WILLY WONKA CANDY COMPANY The Brand is used on a range of candies in North America and a range of chocolates bars in the United Kingdom. The fictional Willy Wonka handed off his chocolate empire to a little boy who was a loyal Wonka customer.
- 16. Initial Public Offering - IPO SALE OF A COMPANY VIA STOCK MARKET Pros Highest value Covers of the magazines Cons Long processing time High attorney and accounting cost Huge restriction and conditions
- 17. COAL INDIA LIMITED – AN IPO COAL MINING AND PRODUCTION INDUSTRY Indian state-controlled company headquartered in Kolkata, West Bengal Previously owned by: Union Government of India Went Public in 2010
- 18. LIQUIDATION
- 19. Liquidation QUIT AND CLOSE THE BUSINESS DOORS Pros Easy and natural No negotiation involved No worry about transfer and control Cons Just waste Undervaluation of assets End of reputation and business relationships
- 20. APPOLO LIFE SCIENCE Country : Australia Sector: Bio-technology Date: October,2008 Reason: Huge debts KLEINS Country: Australia and New Zealand Sector: Retail Date: June, 2008 Reason: Mismanagement and debts
- 22. Process of Valuation DETERMINING THE VALUE Market share Product line Particular industry’s position – Growing or dying FINDING THE BEST BUYERS WATCH THE DEBTS RECEIVE THE RECEIVABLES CONSIDER A SCHEDULE
- 23. EXIT…