Revmedx Exit Strategy
Autor: yashasvi • July 23, 2017 • Case Study • 382 Words (2 Pages) • 661 Views
Exit strategy
Types of exit strategy
Merger & Acquisition (M&A)
The first option for Revmedx is to go for mergers or acquisition, This normally means merging with a similar company, or being bought by a larger company. This helps the company to save resources by combining. ( shall I add makes of the potential companies for mergers and acquisition)
Initial Public Offering (IPO)
Currently the main source of finance for the company if debt, which may turn out to be a burden to survive in the competitive market, the next best option for exit strategy is to liquidate the control by floating initial public offering, this facilitates the company to rise funds for investment and turnkey strategy
Sell to a friendly individual
The next best alternative it to sell the company to another friendly individual, who has the potential to get the company in a better position, this will facilitate us with the funds to pay off the debts .
Use it as a cash cow
If the company attains a good market share in Mexico but for some reason it is not expanding anymore, then it can be used as a cash cow by not investing more money to increase the market share and saving the profits for new products and market for the growth of the company
Retain Ownership - Let an Employee Run Business
This type of strategy will provide us with better and more efficient and self motivated work force, this will also facilitate us to retain the ownership, control of the business and enjoy profits. (needs to be redesigned )
Sell Business to an Employee
Another option is to sell the company to an employee who has the insight of the business and has the potential to run the business better, this again will provide us with money to pay off debts and penetrate into other business models.
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