A Care Study of Exit Planning of Taiwan Entrepreneurs
Date Issued
2012
Date
2012
Author(s)
Wu, Shu-Hui
Abstract
There are many small and medium enterprises which are family-run business in Taiwan. These entrepreneurs run their business through stable and hard-working movement and Taiwan blooming business environment then cumulate reasonable profits. After Taiwan business environment changes, they move their business into China and gain business achievements they did in Taiwan. Now these entrepreneurs are reached age about 55-70 years old and face how to make decision on their built enterprises?
To coach family members? Or to select professional manager to take over? Or adopt M&A process to innovate and acquire new management team? Or adopt M&A to gain profit and exit? Or continue to run business to last minutes then combine property inherit together? While these entrepreneurs face these choices, it will involve traditional family kingdom concept; partner or family member responsibility; an heir capability and willingness;
Most of Taiwan initiated entrepreneurs will face his personal limited life and enterprise endless life match issue, will take sincerely consideration. Unfortunately, they will fall old trap of family responsibility. Maybe some of them may feel that it is better to gain profit and exit from enterprise will be the best way to related partners if cannot find the right person to take over enterprise. However, strong feeling on own built up enterprise, self-esteem, and traditional family run business life tied up with family prosperity together which drive them into dilemma and stop them move forward.
So there many entrepreneurs start thinking to move family-run business into enterprise family. There are many Taiwan small and medium size enterprises do not have sufficient capability and resources to move this direction. So in this study, we raise M&A process to lead enterprises exit from run business mechanism.
We emphasize that: entrepreneur exit from run business mechanism is not equal to enterprise exit. Entrepreneur exit run business mechanism, enterprise may still exist, probably run by other people; Entrepreneur before make decision for his/her own exit mechanism, he/she should consider first: enterprise exit strategies; If enterprise does not have innovation or competitiveness in the foresee future, then initiated entrepreneur should make exit planing and make profit decision?
So in this study, we explore entrepreneur can have many choices to make exit decision. Each choice has many factors need to be considered and there are many issues need to be resolved while execute this choice. We also adopt case study and analysis to let these entrepreneurs have more depth considerations.
This study does not imply that M&A is the best approach. We hope it will remind these entrepreneurs except to find heir to take over, there is another option - M&A. And under international venture funds help, M&A capital and have a good price will not be a big issue. Key point is while entrepreneur decide to make exit decision, he/she should do all evaluation works. This can move enterprise to take a good strategy position "forward to offense, backward to defense". As so, entrepreneur can really enjoy pleasure retirement and mood.
Subjects
Exit
Family-run Business
Merger and Acquisition (M&A)
Enterprise Family
Corporate Value
Type
thesis
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