- Trade Sale / Buyout
- IPO (Frontdoor & Backdoor)
- Management Buy Out
- Cash Cow Optimisation
- Liquidation / Shut Down
When business hear the term “exit strategy”, most assume this means failing to thrive and closing their doors. But there are other reasons to exit a business – some planned.
While much effort and discussion goes into starting a business, very seldom does the same thought go into the exit strategy.
The most common form of an exit is a business sale, but the nature of the acquirer is diverse – a joint venture sister company, a supplier, a management or staff buy-out to name a few.
It is less common to exit via IPO and to have this as the sole exit option, can be myopic. However, valuations achieved are significant and RedPepper is adept at strategizing to position companies for medium term ethical IPOs.
Disregarding the exit, a business which is cashflow positive and profitable is always the holy grail. Losses are only possible, if someone is funding them and this isn’t considered without a solid reason to justify temporary “red ink”.
Finally, liquidations and disaster events are unfortunate options, which RedPepper contemplates more often in the role as the buyer’s advocate, through an acquisition mandate – Spark Ideas, Ignite Growth.