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. Acquisition by a larger tech company: Sell the company to a larger tech company that can benefit from the technology or services offered. Take a significant amount of money from the acquisition and use it to invest in new ventures or retire. This strategy would be chosen because it can provide a substantial financial gain and allow for a smooth transition for employees and customers.
- Conditions for changes: If market conditions change and a better acquisition offer becomes available, or if the company faces challenges that may make an acquisition less viable.
2. IPO (Initial Public Offering): Take the company public and sell shares on the stock market. This can provide a large influx of capital and allow for continued growth and expansion. Take a portion of the profits from the IPO and reinvest in the company, while also taking some profits for personal use.
- Conditions for changes: If the IPO is not well-received by investors or if market conditions are not favorable for a successful IPO.
3. Merger with a similar tech company: Merge with a similar tech company to create a larger, more competitive entity in the market. Take a combination of cash and stock in the merged company, allowing for continued growth and potential financial gain in the future. This strategy would be chosen to increase market share, access new resources, and potentially create a stronger competitive position.
- Conditions for changes: If the merger does not result in the expected synergies or if the merged company faces challenges that were not anticipated.
If the business became unprofitable, the first step would be to assess the reasons for the decline in profitability and determine if there are any potential solutions to turn the business around. If a turnaround is not feasible, it may be necessary to consider closing the business or selling it at a lower valuation. Additionally, seeking outside investment or partnerships could be alternatives to help stabilize the business and explore potential exit options in the future.