Which TWO of the following options are most likely to be acceptable exit strategies to the two owners of the company?


Company AB was established 6 years ago by two individuals who each own 50% of the shares.

Each individual heads a separate division within the company, which now has annual turnover of GBP10 million and employs 40 people.

Some of the employees are very highly paid as they are important contributors to the company’s profitability.

The owners of the company wish to realise the full value of their investment within the next 12 months.

Which TWO of the following options are most likely to be acceptable exit strategies to the two owners of the company?
A . Initial Public Offering (IPO)
B . Management Buyout
C . Sale to a larger competitor
D . Sale to a Private Equity Investor on an earn-out basis
E . Spin off (or de-merger)

Answer: B,C

Leave a Reply

Your email address will not be published.