Episode 4: 7 Exit Strategies For Charleston Entrepreneurs

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Episode Summary

Brett shares the seven exit paths entrepreneurs have when it comes to stepping away from your business in preparation for retirement:

1. Transferring your family-run business to a family member
2. Selling your business to one or more key employees
3. Implementing an Employee Stock Ownership Program (ESOP)
4. Selling your share of a partnership to another partner(s)
5. Selling to a third party
6. Retaining ownership but becoming a passive owner
7. Closing up shop and liquidating

You’ll also learn the pros and cons of the most common exit strategies, as well as a process you can use to identify the best exit path for yourself one day.

In my experience, 60% of small business owners anticipate a transfer to the next generation of family members or key employees, while less than 40% of business owners look to sell to a third party. Click To Tweet

Episode Highlights

[03:00] How to choose the right exit path for yourself based on your business and retirement objectives.
[05:32] The advantages and disadvantages of selling your business to an insider, like a family member, key employee, or co-owner.
[08:17] The potential drawbacks of selling to a third party, even if it offers the best payout among the possible exit strategies for Charleston entrepreneurs.
[12:30] Why liquidation should always be your last resort among your available exit strategies.
[13:56] Key takeaways from this episode.