Planning Your Exit from Your Business

2. Shareholder Objectives

2.1 As a shareholder, you may want to exit to gain financial security and minimise risks.

This is the major goal for many shareholders who want to retire and need a pension.

• The sale must succeed, so you need more than one potential option, and you must be prepared to accept less than the best achievable price.
• You will probably prefer payment in cash, not the shares of a company buying you.This may not always be possible. Deals often involve a combination of the two. You may also get a better theoretical price if you are willing to accept shares.

2.2 You may want to maximise the price you get and accept the risk the exit may fail.

2.3 You may want to pass on the business to a family member.

2.4 You may prefer to sell it to a management team you have worked closely with.