There's a wrong way, a right way, and a profitable way to create an exit strategy from your small business.
When you first started your business, you may have thought you would remain the owner for the entire life of the business. But at some point you realize that eventually you will either want to or need to officially retire.
There is no question that as a small business owner you have worked hard, dedicating your life to the success of your business. That being said, don’t you think a company you put all of your energies into, deserves the opportunity for continued success and growth?
In her brief and insightful article on American Express’ Open Forum blog, JoAnne Berg highlights three options for creating a profitable exit strategy from your business:
Sell to an outsider through an outright sale or a merger.
Sell to insiders (employees, family members or co-owners) through a buy-sell agreement that is negotiated in advance, or perhaps through an ESOP (Employee Stock Ownership Plan).
Transition the leadership to a new CEO, but remain in a shareholder role and receive income (or have your family receive income) from the business.
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