Page 257 - 5.2 i. Manac Finance ITC Summarised Notes

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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