Entrepreneur Options for an Exit Strategy
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What options do entrepreneurs have for an exit strategy as their venture become promising, and what are the considerations they must take into account for the various options?
List the various options that entrepreneurs have for exit strategies, i.e., to leave the business and recoup their investment.
Give an explanation of each option, along with the pros and cons of each option.
Are there any options that is preferred for particular kinds of companies, e.g., IPO for high tech, flip (sell) for service organizations, etc.?
Here are the resources used to answer this question below...
Anonymous. (2006, July 24). For Small -Biz Owners, It's Tough To Let Go. Business Week, 3994. Retrieved May 26, 2011 from http://www.businessweek.com/magazine/content/06_30/b3994407.htm.
Fox, J. (2011, January 6). Why Facebook doesn't want to go public. BusinessWeek Online. Retrieved May 26, 2011 from http://www.businessweek.com/managing/content/jan2011/ca2011017_355912.htm.
Burrows, P. (2010, February 15). Hot tech companies like Yelp are bypassing IPOs. Business Week Online, 4166, p. 23. Retrieved May 26, 2011 from http://www.businessweek.com.
Faust, D. (2008, May 26). The perils of going public. Business Week, 085. Retrieved May 26, 2011 from http://www.businessweek.com/magazine/content/08_21/b4085064750402.htm.
MacMillan, D. & Burrows, P. (2009, November 2). The app economy. Business Week, 4153. Retrieved May 26, 2011 from http://www.businessweek.com/magazine/content/09_44/b4153044881892.htm.
Thornton, E., & Cady, J. (2008, December 8). What have you done to my company?. Business Week, 4111, p.40. Retrieved May 26, 2011 from http://www.businessweek.com/magazine/content/08_49/b4111040876189.htm?chan=magazine+channel_in+depth.
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Solution Summary
The solution discusses options entrepreneurs have for an exit strategy as their venture become promising, and what are the considerations they must take into account for the various options.
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Exit Strategy:
As corporations grow in their general operations, new techniques have to be adopted. The exit strategies enable the organization to take up new opportunities and develop modes on how to expand the company. The exit strategies are the techniques that are used by a company to alter their products and other organizational operations so as to venture into a beneficial and active market economy. The overall corporate strategies of the organization should hence have the following exiting strategies to be viable alternative that will make the operations of the company to be profitable: mergers and acquisition, initial public offering, sell to a friendly individual, make it your cash cow and liquidation and close. Through the above stated exit strategies, the organization should bear in mind that these exist strategies will provide the corporation with the financial security, financial opportunity and an enhanced value for the company and the products (Exit Strategies, 2012).
Acquisition and Mergers as Exit Strategy for the Company:
The advancement of the company in the market industry guarantees that the business road taken is promising to the general company operations. To expand, the company can take opt to merge with another company or acquire an organization in the same market industry. Through this exit strategy, there will be a win-win situation since the organization through the stated strategies have complementary ...
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