Create 2 or 3 exit plan that would be potentially available for tech company consider financial interest at the point of exit and how much money if any you plan to take it. Based on your exit plan decide whether you will exit by closing or transfer or selling. In two to three bullets explain your rational for choosing this strategy. Describe which condition might cause you to make changes to your exit strategy. What would happen if your business became unprofitable, for example
1. IPO: The tech company would go public, allowing shareholders to sell their shares on the open market. The financial interest at the point of exit would be based on the valuation of the company at the time of the IPO. I would plan to take a portion of the money earned from selling my shares but would also keep a significant stake in the company to benefit from future growth. I would choose this strategy because an IPO can provide significant liquidity and access to public markets, increasing the company's visibility and potential for further growth.
2. Acquisition: The tech company would be acquired by a larger company in the industry. The financial interest at the point of exit would be based on the purchase price offered by the acquirer. I would plan to take a significant amount of money from the acquisition, depending on the valuation and terms of the deal. I would choose this strategy because it can provide a quicker and more guaranteed exit than an IPO, and can also offer strategic benefits and synergies with the acquiring company.
3. Strategic partnership: The tech company would form a strategic partnership with a larger company that would provide funding and support for further growth. The financial interest at the point of exit would be based on the terms of the partnership agreement. I would plan to take a smaller amount of money upfront but would benefit from ongoing support and potential future growth opportunities. I would choose this strategy because it can provide funding and resources for the company to continue growing, without requiring a full exit or loss of control over the business.
Changes to the exit strategy might be necessary if market conditions change, the company's financial performance declines, or if new growth opportunities emerge that would benefit from a different exit strategy. If the tech company became unprofitable, it could make it more difficult to attract investors or buyers, potentially leading to a lower valuation or limited exit options. In this case, it might be necessary to consider restructuring or winding down the business, rather than pursuing a traditional exit strategy.