Exit or Succession Options for a Small Business: Detailed Assessment

This report assesses exit and succession options for small businesses, focusing on Checkout.com. It covers various strategies, including winding up, selling in the open market, succession planning, and mergers and acquisitions, detailing the advantages and disadvantages of each. The report emphasizes the importance of planning for business growth and development, highlighting how strategic approaches can enhance productivity and profitability. It examines the process of winding up, the benefits of selling in the open market, the implications of succession planning, and the impact of mergers and acquisitions on market control and capital. The conclusion underscores the significance of planning in achieving business goals and making informed decisions regarding exit and succession strategies.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in brochure....................................................................................................................1
TASK 2............................................................................................................................................1
Covered in another document.....................................................................................................1
TASK 3............................................................................................................................................1
P5) Assess exit or succession options for a small business explaining the benefits and
drawback of each options............................................................................................................1
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The planning for growth is the strategic approach of the business to attain the certain
goals and objective within the stipulated period of time. The planning has been done to enhance
the working potential of the business with this the ability and capacity of the company will get
enlarged thus the attainability of target become easier (Akram, 2017). The company will perform
different operation and functions so as to develop the better opportunities as from the market
and with this the capabilities of the company to measure the appropriate growth and development
get sustained. The report is based on the Checkout.com that uses the 100% proprietary
technology and provide the effective and liable payment process to the customers. It was
founded by Guillaume Pousaz and have bootstrapped the start up into the international
organisation and have processed billion of payments. The report consist of the different pathway
that is selected by the business by considering its risk and future options for growth, potential
source of funding as per the need of business, coherent business plan with financial information
and exit and succession options for small business as by comparing and contrasting options.
TASK 1
Covered in brochure
TASK 2
Covered in another document
TASK 3
P5) Assess exit or succession options for a small business explaining the benefits and drawback
of each options.
Exit Plan: Every small business should keep in mind that what would be the the best strategy for
the business while leaving the market at a certain point of time. Choosing the best exit plan will
give the higher amount of money. The exit plan which is prepared in advance would be liable in
giving more returns as compared to the unplanned business exit strategy. Following are the
different exit plans with their advantages and disadvantages:
Winding Up: It is a easy way to end the life of a business by selling its assets and
discharging the debts. Sometimes it is the only option which remains available with the business
especially when the business is of sole proprietorship (Casas, 2019). Many a times situation
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arises where there is no purchaser available for the existing business and the owner of the
business has made his mind to leave the market due to various reasons, in that case a winding up
will be the only solution.
Advantages: The major advantages of winding up is its simple process. The whole
winding up process will be done in a quick and efficient manner.
Disadvantages: If the business adopts for a winding up it will give the lowest rate of
return on investment to the owners of the company. The other drawback is that when the assets
of the business will be sold, firstly the debts of creditors will be discharged from that amount and
owner will only get the remaining share.
Sell in Open Market: Small Businesses generally adopts for this exit plan by selling the
business in the open market when the owner decides to retire.
Advantages: One of the advantage of this is that it will attract the buyers if the business is
in profit. Further the inclusion of goodwill and assets of the business will increase the selling
price.
Disadvantages: It can be a long process to find a buyer for the business. Also the valuing
of a business is a difficult task therefore it is highly improbable that the seller will get the
expected amount or not (Denton, 2017).
Succession Plan: The change in the leadership of a business through succession can be a
great way by making a successor to a family member or any reliable employee of the business.
Advantages: The business will not be go away from the hands of the original owner of
the business and the original owner still can have some involvement and influence over the
business because it lacks involvement of third parties.
Disadvantages: While making successor to a person its very difficult and challenging task
to identify the capabilities of the successor. In future there is also possibility of conflict between
the family members.
Mergers and Acquisitions: To work in a more efficient manner now a days companies
are going for the mergers and acquisitions more frequently to enhance their business and to cover
more area of the market (Hu, 2018). It is a proven fact that two companies coming together
through merger or acquisition will work in a more productive manner which will lead in the
enhanced profit.
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Advantages: The most important advantage of the merger and acquisition will be the
increase in controlling the market. By this their capital will also increase. The merger and
acquisition will also be beneficial in terms of tax.
Disadvantages: Merger and acquisition may create a hike in price for the consumers as
there can be a monopoly after the merger. The jobs of many employees might come to an end.
The other drawback is that if the merging companies are of different in nature, the merger will be
a challenging affair.
CONCLUSION
It has been concluded from the above report that planning is the essential working criteria
for the business that help to gain the better growth and development in systematic manner. It
helps the business to gain the suitable advantage while increasing the productivity and
profitability of the company. There are some different exit and succession options for the
company that helps the business to make the effectual benefits.
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REFERENCES
Books and Journals
Akram, Z. and et. al., 2017. Efficacy of photodynamic therapy versus antibiotics as an adjunct to
scaling and root planing in the treatment of periodontitis: a systematic review and meta-
analysis. Photodiagnosis and photodynamic therapy. 19. pp.86-92.
Casas, M. and et. al. 2019, August. Strategic Planning Model to Improve Competitiveness for
Service Industry SMEs Using the Balanced Scorecard. In International Conference on
Human Interaction and Emerging Technologies (pp. 1001-1006). Springer, Cham.
Denton, G., Forsyth, M. and MacLennan, M., 2017.Economic planning and policies in Britain,
France and Germany. Routledge.
Hu, M. and et. al.,2018. Growth layer and fibre orientation around knots in Norway spruce: a
laboratory investigation. Wood science and technology. 52(1). pp.7-27.
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