Blog

How to Plan a Successful Exit Strategy

Many people dream of beginning their own business someday. Whether their end goal is to create and build a company that lasts for generations, or they just want to design a product or service to sell off and walk away, each business’ growth strategy should be aligned with these end-game objectives. Regardless of what those ambitions are, it’s essential to be prepared with a carefully planned exit strategy.

At Ashley Capital Group, our national mergers and acquisitions advisory firm provides strategic partner searches for our clients to assist them with the full sales of their companies to provide them with not only the resources they need, but allow them to yield the maximum value for their business. Let’s examine why having an exit strategy is so crucial for your company—even if you don’t plan on selling it—and how it can help you to avoid issues in the future. 

Why Do I Need an Exit Strategy?

There can be myriad reasons why you would need to design a well-thought-out exit strategy, including:

  • You want to retire and cash in on your company’s value
  • A significant economic shift happened that negatively impacts your revenue
  • You’re experiencing a family or health crisis
  • A larger company offers to acquire or merge with your business
  • You’re tired of the daily grind and want a change
  • You’ve noticed that there is a decrease in profit
  • You want to spend more time with family
  • There is uncertainty in the market

Types of Exit Strategies

Any owner of a business should plan their exit strategy in advance to ensure a successful result. Regardless of your plan, you’ll need to prepare each step of the way. Here are some of the most common business exit strategies:

Selling Your Business

Selling a business is one of the most straightforward exit strategies, and can be conducted between two private parties, all without the oversight and government regulations that accompany an initial public offering (IPO). Because this type of exit strategy results in the seller of the company receiving cash for their business, it’s essential to get an excellent valuation of the company. At Ashley Capital Group, we can get you the appraisal you deserve so you can sell your business with confidence.

A Merger

Since it can significantly increase your business’ value, a merger can be an ideal exit strategy. For instance, two businesses, valued at $5 million each, that join forces and lower overhead costs can expand into a $10 million business much more quickly than on their own. At that point, the shareholders in the company receive stock in the bigger company, presumably resulting in a higher worth than the share in each independent company.

An Acquisition

An acquisition is another way to achieve liquidity by getting bought out by someone who wants to take over your business. This is a typical exit strategy for small and medium-sized businesses, especially among service providers such as CPAs, law firms, and insurance companies.

Plan for the Future Now

Now is the perfect time to begin planning your exit strategy, especially if you want to sell your business for retirement funds or another financial windfall in the future, and we can help. Our firm will take the time to understand your company and can provide you with trusted advice about your business operations, valuations, contract negotiations, and regulations, all to get you the appraisal and money that you deserve.

Don’t wait until an offer comes across your plate to plan your exit strategy. By then, it may be too late, because you might not have a thorough understanding of your valuation or what your options are. Instead, speak with our trusted experts to design an exit plan that supports and addresses your life goals, both now and in the future. For more information, contact Ashley Capital Group by calling 215-688-5533 or emailing deals@ashleycapitalgroup.com today.

Contact Us

Recent Transactions

  • Acquired By

    A Subsidiary Of

  • Digital Advertising Agency

    Acquired By

    Strategic Advertising Agency

    A Subsidiary Of

    $90M Media Holding Company

  • Acquired By

    A Subsidiary Of

  • Digital Advertising Firm

    Acquired By

    Advertising Agency backed by Global Credit Fund

  • Acquired By

  • Managed IT Services Firm

    Acquired By

    Strategic Buyer

  • Acquired By

  • Specialty Manufacturing Firm

    Acquired By

    Strategic Buyer

See All Recent and Current Transactions >>