Business Finance Homework Help

 

• Develop a succession plan or exit strategy for a business. Within  your response, be sure to discuss which elements are essential to this  succession plan or exit strategy. Provide support for your response.
• Be sure to respond to at least one of your classmates’ posts.

DR. and class,

I will choose to continue my thoughts of owning a franchise campground to discuss an exit strategy.

The first thing I would do in the years before I wanted to exit would be to find out if any family member wanted to be a partner with the thoughts of selling it to them. If that was the case I would do a basic sale for cash plus note. If no family member was interested in succession I would go to the manager and see if he/she was interested in succession. If the manager was able to come up with a sizable cash amount I would consider the cash plus note type sale.

If there was no immediate successor (I have no children)I would advertise the business for sale or work with the franchiser to assist in finding a candidate. Having the franchise would be a benefit during the exit process since I do not have immediate family interested in succession. As I have researched my dream business I found that there are several established KOA campgrounds for sale. I did not care for their locations, otherwise, I may have considered purchasing one instead of building.