Please put together complete and well thought out responses. I am looking for or

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Please put together complete and well thought out responses. I am looking for original input so please share your thoughts and experiences so we can all learn from them. Please make sure that you back up the posts with factual information
Post1: Posted Date: January 25, 2024 1:13 PMStatus:Published
Harvesting in a business, also known as exiting, is a method that owners and investors might use to get out of a business, and typically reap the value of their investment. Longenecker et al. (2023) in the book say “A entrepreneur needs to understand that harvesting encompasses more than merely selling and leaving a business. It involves capturing value (cash flows), reducing risk, and creating future options” (pp. 334, para. 7). Many entrepreneurs forget and fail to have harvest plans after they have s successful firm.
There are four separate methods when harvesting a privately held firm and those include selling the firm, distributing the cash flow, offering stock through the public, and using private equity recapitalization. Most of the time when an entrepreneur wants to sell their company it relates to retirement, estate planning, and a desire to diversify investments. They can sell to strategic buyers, financial buyers, or employees. Harvesting by slowly withdrawing a firm’s cash from the business has two important advantages: the owner can still control the business while they are slowly harvesting their investments and they do not have to look for a buyer or deal with any of the expenses of selling the firm. Offering stock through the public helps enhance the reputation of the firm, and provides an additional source for capital to grow, a stock that is publicly traded can create ongoing interest, and publicly traded stock is more attractive to personal keys. This happens through a process called Initial Public Offering (IPO) which “requires registering the stock issue with the Securities and Exchange Commission (SEC) and adhering to the “blue sky laws” that govern the public offering at a state level” (Longenecker et al, 2023, pp. 341, para. 1). Harvesting using private equity recapitalization, which is also called private equity recap, happens when a private investor provides a combination of debt and equity to a firm and allows entrepreneurs to cash out just their portion of their investment.
Planning for a firm to be harvesting eventually is a fundamental part of having strategic business management. Harvesting allows owners to convert their assets into cash or investments, it helps owners with retirement, allows owners to maximize the value of their business, opens new growth opportunities, and allows owners to have peace of mind. References
Longenecker, J. G., Petty, J. W., Hoy, F., & Palich, L. E. (2023). Small Business Management: Launching & Growing Entrepreneurial. Cengage Learning.
Post2:
Explain what is meant by the term harvesting. “Harvesting” typically refers to business strategy of growing and maximizing the value of an existing product,service or business unit before either divesting or discontinuing it. It involves Maximizing cash flow and profits in the short term,often by reducing costs and making efficiency improvements ,whilst gradually reducing investments in the product or service. 2.What is involved in harvesting an investment in a privately held firm?
When harvesting an investment in a private firm, several steps are involved in the process. First things first, the investor needs to assess the current value of the firms ownership stake in the firm. This involves evaluating the financial nn health and overall performance of the business, as well as the growth prospects. Once they have determined the value the investormay decide to sell the ownership stake either to another investor or a public offering.Investment bankers, lawyers, & other professionals will take part in the transaction.
3.Why should an owner of a company plan for eventually harvesting his or her company There are a lot of reasons why an owner of a company may plan for harvesting their company. The reasons may well be anyof these; Financial Gain, Retirement, New opportunities, etc… It’s very important to plan ahead and think and ponder about the factors such as market conditions, timimg, and the needs & goals of the business and the owner. This in the long run ensures a successful harvest. Also a very prepared harvest when the time comes. Harvesting can be a rewarding process. It maybe challenging but well worth it in the long run. References include; “the exit strategyHandbook: The best guide for entrepreneurs starting,Planning, and exiting a business” by Jerry mills

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