Running a good business and one that is in a position to be sold are two parallel journeys. Founders should build exit readiness from day one to negotiate from a position of strength.
Five Exit Strategies
1. Sell to a New Owner
Find willing buyers through existing networks or investor groups.
Sales can be structured as asset or share purchases, requiring professional legal and accounting guidance. This is the most common path for service businesses.
2. Intergenerational Transfer
Pass ownership to the next generation with careful attention to legal and financial obligations.
I’ve worked with family businesses transitioning through multiple generations. It requires planning years in advance.
3. Liquidate and Close
The straightforward approach: close operations and sell assets.
Proceeds must first satisfy debts and obligations before distribution to owners. Not glamorous, but sometimes the right choice.
4. Initial Public Offering (IPO)
Take the company public through stock exchange sales.
This is rare for smaller service businesses due to complexity and regulatory costs. Unless you’re building a very large company, this probably isn’t your path.
5. Merger & Acquisition (M&A)
The company is acquired by or merges with another organization.
This was my chosen path when my business received an acquisition offer. The key is being positioned to attract that interest in the first place.
The Core Message
Successful exits require early strategic planning, regardless of which path you ultimately choose.
Don’t wait until you want to leave to start preparing. Build exit-readiness into the business from the beginning.
Go deeper: Read the full Agency Exit Strategy Guide for a step-by-step framework to prepare your agency for sale.