Exit options
Enabling community and employee ownership of profitable enterprises and assets through the application of novel business structures and financing mechanisms opens up a new ‘exit’ for founders and early investors.
Conventionally there are 3 ways to sell your business or stake in a business:
- Sell your business to your team – Management Buyout
- Sell your business to your competition – Tradesale
- Sell your business to the public – IPO or secondary market listing
Partially or fully exiting to your crowd is appealing to businesses that may not have a management team with the resources to provide a management buyout, or to the business that doesn’t want to sell to the highest bidder, or can’t justify a public listing.
Types of Crowd Exit
Crowd exits can take place in a singular transaction. For example, the crowd gets finance to buy the business with assets under mortgage from a lender. The crowd and management buy the rights to the business including the debt associated with the purchase. They do however now own the business and have aligned incentives.
Crowd Exits can be a series or linear transactions that dilute early investors, founders or voluntarily disposed of shares over time and accrue control with the crowd over time.
Crowd Exits can also be based on a pre-defined earn-out that is governed less by time than by underlying performance of the venture.
What We Offer
Reconomy consulting offers:
- Strategic advice for enterprises considering whether crowd / community / employee exit mechanisms could be a viable exit strategy.
- Business model development, and organisational structuring for crowd / community / employee owned enterprises.
- Finance acquisition for crowd / community / employee owned enterprises
Are We A Fit?
Get in touch to find out if we can help