1. Name of presentation
Company name
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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

7. LIFESTYLE
COMPANY

8. Lifestyle Company

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

21. VALUATION OF BUSINESS

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…