Exit Stratedgy

When in business, there is a process in planning the exit strategy of a company. This strategy is a plan that is important to the bank to retire some of its debt that was obtained during startup. This strategy will consist of the mix of ownership, the market, and company performance. This exit strategy will give the company and its owners the best possible position to maximize on the financial returns on the company. You can cease the company all together or turn it over to another entity.

The owners of SET will exit this business if it is no longer successful and will not be making a profit. It is the intention of the owners to run this business successful until at which time they will close the doors of the business. In the event it is not successful the owners will implement the necessary changes to liquidate the business with minimal damage to the owners. All equipment and property will be sold to pay off creditors.

In this case when everybody wants out we will liquidate the company to pay all debt and creditors back. Whatever is left will be divided amongst the seven owners of the company. After further discussion it is said that any founding member wants out and the rest do not, then it is established that the other remaining founders will buy that person’s share of the company market value or the average of the past 3 year profit. In addition they will get the market value or the average of the past 3 year profits, minus any bonuses that is paid. In the event a founder dies, then his shares will be turned over to the designated party that will receive it. They also will receive that person’s share of the company market value or the average of the past 3 year profits, minus any bonuses that is paid. This will be written in a contract and signed by all Founding members.