Planning Your Exit from Your Business

4. Management Objectives

4.1 You may want to end your management involvement. Some exit routes may require you to stay with the business for some time.

• A float usually only provides a partial management exit.
• Management buy-outs (MBOs) may include rollover arrangements that require you to stay involved for a set period.
• If you sell more than 50 per cent of a company, you will no longer have control over it - so it may be a bad idea to stay involved.

4.2 You may want to carry on.

• You may earn a good living from a business which would not be worth much without you.For example, consultancy businesses which can be reliant on an owner's skills.
• Beware of holding on to the business for too long. It may stagnate and lose value, or you could be forced into exiting because you have to, for a bad price.