Exit Strategy

Any business has a definite life cycle. Some businesses can last for generations whereas others go into decline due to a variety of market factors or due to personal reasons such as you are planning to retire and there is no one left to handle it. Plan your exit well in advance with our help.

Exit strategy
Planning far in advance helps you to take your business to the point of sale when it can derive maximum value. You can plan ahead to improve financial situation, reduce debit, reduce employees and any other liabilities as well as improve market position in order to get a higher valuation.

The ideal moment is to think of an exit right when you start a business but that rarely happens. Still, any time is a good time. In fact, run a business as if you plan to exit the next year. This way, everything will be up to date. Still, we recommend a year’s time to start the exit process.

Who to appoint?
You may not be able to do it alone. Retain Manan Business to manage your exit strategy for the best outcome.

Why plan to exit a business?
You cannot sell off a business on the spur of the moment. You will not find buyers or, worse, you will be forced to sell at a far lower price. Proper advance exit strategy will help you to derive maximum benefit.

How to do it
Manan Business recommends the following outline to go about planning for an exit strategy

  • Decide a date by which you will divest your business
  • Decide on a fair amount at which you would like to sell
  • Think of the profit you will get at this price and does it cover all associated costs
  • Plan on what to do in order to achieve the targeted sale price
  • Prepare the business for sale a year in advance, such as winding up debts and liabilities
  • Retain Manan to keep constant monitoring to ensure you are on the right track
  • Prepare 3 months’ milestones and check if you are achieving them
  • Initiate the exit strategy

Benefits of planning an exit strategy

  • You can plan on what to do after you have sold off your existing business and are not left in a vacuum
  • You realize a higher value
  • You have a goal towards which you can work in full earnest.