Exit Strategy
An Exit Strategy is a planned approach for a business owner or investor to sell their ownership in a company or venture. Think of it like planning how to sell a house before you even buy it. Business advisors help clients plan these strategies, which might include selling the company to another business, passing it to family members, or selling shares to the public. It's similar to having a backup plan, but for business ownership. When you see this term in resumes, it usually means the person has experience helping business owners plan and execute ways to leave their business while maximizing their financial return.
Examples in Resumes
Advised multiple small business owners on Exit Strategy development and execution
Created comprehensive Exit Strategy plans for family-owned businesses with revenues over $10M
Led successful Exit Strategy negotiations resulting in client acquisition by Fortune 500 company
Developed Exit Planning roadmaps for business owners approaching retirement
Typical job title: "Business Exit Advisors"
Also try searching for:
Where to Find Business Exit Advisors
Professional Organizations
Networking Platforms
Industry Resources
Example Interview Questions
Senior Level Questions
Q: Can you describe a complex exit strategy case you've handled and how you overcame the main challenges?
Expected Answer: Look for answers that demonstrate experience with multiple stakeholders, complex valuations, and successful negotiation outcomes. They should explain how they managed family dynamics or complex financial situations.
Q: How do you approach valuing a business for exit planning purposes?
Expected Answer: Should discuss various valuation methods, market conditions, industry multiples, and how they consider both tangible and intangible assets. Should mention experience with actual transactions.
Mid Level Questions
Q: What factors do you consider when developing an exit strategy for a family business?
Expected Answer: Should mention family dynamics, succession planning, tax implications, and maintaining business continuity. Look for examples of actually working with family businesses.
Q: How do you help clients choose between different types of exit strategies?
Expected Answer: Should discuss analyzing client goals, market conditions, timing, and different exit options like family succession, management buyout, or third-party sale.
Junior Level Questions
Q: What are the basic types of exit strategies you're familiar with?
Expected Answer: Should be able to list and briefly explain common exit types like selling to a competitor, family succession, IPO, or management buyout.
Q: What is the first step you take when working with a new client on exit planning?
Expected Answer: Should mention initial assessment of client goals, current business state, and timeline expectations. Basic understanding of the discovery process.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of business valuation
- Knowledge of different exit types
- Financial statement analysis
- Basic client communication skills
Mid (2-5 years)
- Experience with successful exits
- Family business consultation
- Tax planning knowledge
- Negotiation skills
Senior (5+ years)
- Complex deal structuring
- High-value transaction experience
- Advanced valuation expertise
- Strategic planning leadership
Red Flags to Watch For
- No actual transaction experience
- Lack of understanding of tax implications
- Poor grasp of business valuation methods
- No experience with legal documentation
- Unable to explain different exit options
Related Terms
Need more hiring wisdom? Check these out...
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Succession Planning: Your Company's Future-Proof Strategy
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