Exit Strategy/Succession
When should an Entrepreneur plan an exit strategy?
At the Start up stage
Selling outright just because he/she wants to move on to another venture or retire
Direct Sale
In my presentation what was the overview on Chapter 11 about?
Reorganization
T/F Entrepreneurs are likely to continue starting new ventures even after failing?
True
What percent if businesses have a succession plan in place?
60%
What does ESOP stand for?
Employee Stock Option Plan
What decision made reflects Extension?
Postpone Claims
Failed entrepreneurs have a better understanding of? (3 facts)
1. Market research 2. More initial capitalization 3. Stronger business skills
If no one in the family is interested in the business, what three options do you have?
1. Train key employee 2. Hire from outside 3. Sell outright
Selling or transferring a venture to loyal, key employees?
Management Buyout
A creation of a five yer repayment plan under court supervision falls under what chapter?
Chapter 13 Extended Time Payment Plans
T/F Business failure does have to be a stigma when seeking venture capital?
False
What percent of family businesses survive into the second generation?
30%
A business that is sold to employees over a period of time?
ESOP
What is the most extreme case of bankruptcy?
Liquidation
What are 3 important considerations in case an entrepreneur fails?
1. Talk with your family 2. Seek outside assistance 3. DO NOT HANG ON to venture
What percent of family businesses survive into the third generation?
12%
What are the three alternatives positions of the Bankruptcy Act?
1. Reorganization 2. Extended time payment 3. Liquidation
Two of the most extreme bankruptcy?
1. Voluntary bankruptcy 2. Involuntary bankruptcy
What are the 3 principles of a successful turnaround?
1. Aggressive hands on management 2. A plan 3. Action