Startup Funding Espresso -- What are the Exit Options?
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are several ways to exit a business. You can sell the business to another company or investor. This provides liquidity to the owners.\xa0\xa0\xa0 The downside is, it\u2019s not clear what happens to the employees and the direction of the company. You can develop an employee stock ownership plan. This transfers ownership to the employees and brings tax benefits plus rewarding the employees who now have control.\xa0\xa0 The downside is that the valuation will most likely be lower than an outright sale. You can use a management buyout. This provides liquidity to the owners.\xa0\xa0 The downside is the process can take some time to complete, even years. You can transfer the business to a family member. This provides the family member an income and potentially a career. The downside is there are estate tax consequences that must be considered. In exiting your business, consider the impact not only on yourself, but also on the employees, customers, and others associated with the business. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0 Music courtesy of .