October 18, 2013
Looking through this list of options for a business exit, only a few of the options are the result of a well thought out business plan. Business plans are common for start ups, but once a business is off and running few have a five year plan and even less have an exit plan. In my business law practice I've seen all of these options in play. Most of the sad exits could have been avoided such as the loss of private business stock in a divorce if there would have been a prenup. Or if the CEO would have reached out to a turn around specialist before it was too late then the bankruptcy may not have occurred. The company that liquidated at auction due to the bank enforcement may have its doors open if they would have had a solid agreement negotiated with their largest customer that did not include the "standard" indemnity language. The old adage fail to plan and you plan to fail is played out over and over again. My clients that have a clear succession plan also tend to be the clients that contact me proactively before the legal mess. They are the same clients that I'd put money on will exit with a buy out, merger, ESOP, estate plan, or private equity infusion. CEOs take a hard look at the exit options and decide today the exit door you want to take for your business. For help with business exit strategies, contact Goosmann Law at info@goosmannlaw.com or call 712.226.4000. We want to hear from you.