Page 8 - FINANCE PART 2 - 9. Valuations

VALUATIONS
Introduction

• There often comes a time when an entrepreneur wants

to sell his/her business. An entrepreneur may have

been very successful in starting and growing a business,

but oftentimes he/she is very uncertain of how to

prepare for its later sale. (These arguments are more

relevant to owners of unlisted, private-equity

businesses.)

• An entrepreneur could decide to sell his/her business

using several avenues. In a 2013 online publication,

Investec, a specialist bank, described the most

prominent exit strategies in this area as

• selling to another market player

• selling to a private equity firm

• transferring ownership to employees, management or family

• listing the business through an initial public offering

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