Business owners may have different goals, long and short term, but often these include the sale of a business, going public or other steps that permit the owner to reap the rewards of building the enterprise by cashing out in some manner, whether the owner intends to stay active in managing the business or not.
Planning for these types of events is commonly referred to as an exit strategy. This type of planning is crucial in order to prepare a business so it is ready to be offered or sold in a manner that is consistent with the owner’s desires.
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