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Redtail Capital - Unlocking Business Value

 

Your Exit GoalsBusiness Exit OptionsBuilding Business ValueBusiness Exit ProcessWhy Choose Redtail Capital?

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Sale

Family Transfer

Leveraged Buy Out (LBO)

Management Buy Out (MBO)

Employee Stock Ownership
Plan (ESOP)

Private Equity Recapitalization

Gift or Charity 

Public Offering

Liquidation

Liquidation

Most business owners consider liquidation to be the option of last resort. The assets are sold off, all debts repaid, and the remainder goes to the owner. 

Expect to receive the lowest benefit of any of the exit options, as you will receive no credit for customer relationships, reputation, employee knowledge, etc. Goodwill and other intangible assets simply disappear. 

In many cases, the proceeds from the sale of the assets won't cover the outstanding liabilities, in which case a liquidation through bankruptcy may be the only option.

It may be that there are some business processes that are functioning well and can continue as a going concern, in which case you may decide to execute an asset sale on the parts of your business that are not generating cash flow but can be sold off to generate cash.

This is a fairly simple and fast process and may not require as much work up front, but is still a costly process - almost as high as selling the business.