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

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Family Transfer

Leveraged Buy Out (LBO)

Management Buy Out (MBO)

Employee Stock Ownership
Plan (ESOP)

Private Equity Recapitalization

Gift or Charity 

Public Offering


Your Options for Receiving Maximum Value

There are many options when it comes time to exit a business. You can sell the business to a third party, arrange for your family to take over, have key employees buy you out, or you may even decide to "gift" the business to charity. The majority of business owners choose option number one - selling their business. It pays real dividends to consider which option will best fit your goals for the future. Depending upon which option you choose, your strategy and preparations will change.

Sale: The most common method  one thinks of when considering an exit. You sell your company to an outside entity, obtaining the best price you can. This is the quickest way out, but may not always be the best. (More)

Family Transfer: Many businesses are passed down from generation to generation. This type of transfer requires the same amount of planning and execution as a sale to a third party. (More)

LBO: A leveraged buyout, usually by management, is financed by a bank or other financial entity. These can be difficult to arrange in today's economy but worth looking into. (More)

MBO: This is a management buyout without the leverage. You can expect to take less up front, with more payments spread out over time. You are at risk if the company suffers a setback. (More)

ESOP: An employee stock option program provides a gradual exit and can bring more options to the table. Making the employees owners of the company has benefits for all parties, but must be structured correctly. (More)

Private Equity Recapitalization: This requires a longer time horizon, but can provide greater value at the end of the day. A private equity group will bring more than cash to the table, including relationships, management ability, experience and other benefits. (More)

Gift or Charity:  In some cases, an owner may not be as interested in getting payment for the company as they are in reducing their tax liabilities and "doing good." (More)

Public Offering: For companies with strong growth potential, a public offering may offer a way to transfer ownership to the public. This can be accomplished by a full IPO, a reverse merger with an existing public entity, or a direct public offering. (More)

Liquidation: Usually considered the least appealing exit strategy, a liquidation can nonetheless provide a way out. (More)

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