Exit Strategy Checklist

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This article is supplied to GrownUps by Northington Partners

What do you need to address in an exit strategy?

Lifestyle

• Work life harmony and balance
• Life after sale of business
• Amount of Capital / income required on exit

• Target date
• Preparation of business for sale
• Economic and industry conditions
• Sale process

• Capacity to grow value
• Product(s) life cycle
• Value now / five years
• Optimal business performance

• Commercialise goodwil
• Cohesive management team
• Legal protection (eg: patents)
• Removal of dependencies (customers / suppliers)
• Documented processes

• External
• Internal (Other shareholders / Management)
• Sound shareholders' agreement
• What do they value

• Cash or deferred compensation
• Ability to pay cash
• Tax structuring of transaction (assets vs shares)
• Ongoing consultation role to business

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Roy Austin - Northington Partners - Level 13, 52 Swanson Street, Auckland, New Zealand

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