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Copyright 2013 Jack M. Kaplan & Anthony C. Warren

Exiting the Venture

Patterns of Entrepreneurship Management

4th

Edition,Chapter 13

Building and Exiting

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Copyright 2013 Jack M. Kaplan & Anthony C. Warren

Presentation Outline

Personal Reasons or !elling "#siness Reasons or !elling

$al#ing the Co%pany

eter%ining "est Can'i'ates (a) Consi'erations

!elling to *%ployees or Managers

(ranserring to +a%ily Me%,ers -Ps

R#nning the "#siness /hile !elling

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Copyright 2013 Jack M. Kaplan & Anthony C. Warren

Personal Reasons for Selling

-nestors are 'e%an'ing a ---(4 eent

*ntreprene#r /ishes to cash5in part or all o their

o/nership

isagree%ents ,et/een sharehol'ers

Accepta,le nsolicite' er

"#siness 5 "#rn #t

Personal *ent Poor 6ealth

Retire%ent Planning

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Be Clear h! "ou are Selling

!trategic Reasons

7ro/th *)cee'e' Manage%ent

Capa,ilities iersiy Personal 8et Worth

ther -nterests

7etting l'er 5 -llness 5 iorce /ner isagree%ents

-nestors esire to i9#i'ate

Copyright 200: Jack M. Kaplan & Anthony C. Warren

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Business Reasons for Selling

"#siness Re9#ires !igniicant Capital or

7ro/th

8e/ Co%petition Appearing i%ite' pport#nity or 7ro/th

Close to "ankr#ptcy

Market Con'ition +orecasts arenattractie

Consoli'ation is cc#rring in the !ector

Copyright 200: Jack M. Kaplan & Anthony C. Warren

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#etermine the Compan!$s Valuation

"eore consi'ering a sale o the co%pany; it

is i%portant to esti%ate the potential al#e history o

asset p#rchases; sales; an' proits; conentional

%etho's or al#ation are #se'