Turning a Shutdown Into a Strategic Exit
From Split Focus to Strategic Exit
When one founder found himself leading two mission-driven businesses, he faced an increasingly difficult choice: double down on the rapidly growing company that was pulling his focus—or continue operating a second business that, while deeply meaningful, no longer had the momentum it once did.
The decision felt stark. One company was scaling fast and aligning with the founder’s long-term goals. The other had brought real impact—leading professionals into nature to reconnect with purpose—but demanded time and energy he no longer had.
“I thought the only way I could fully focus on my growth business was to just walk away from the other one,” the founder said. “AVL helped me see a different path—one that actually worked incredibly well.”
The Challenge: When Mission Meets Market Realities
The founder’s second company was more than just a business—it was a calling. Built on the belief that leadership should be grounded in authenticity, movement, and connection to nature, the company created space for executives to grow outside of traditional models. It had purpose and a proven model.
But purpose alone wasn’t enough to justify the growing operational burden. As the founder’s attention shifted toward his high-growth business, continuing to run both became unsustainable due to time restraints.
He began preparing to shut it down.
The Turning Point: A Conversation That Changed Everything
During a catch-up with AVL’s CEO, Chris Schwalbach– the founder shared his plan to wind down operations. Instead of co-signing the shutdown, Chris asked a few simple—but powerful—questions:
What are you afraid of?
What would it look like if there were another option?
Could we turn this into a win instead of a walkaway?
From that conversation, a new idea emerged: a structured earn-out that could allow the founder to divest responsibly—without losing the legacy he’d built or walking away empty-handed.
“I trusted the idea,” the founder said, “even though I didn’t know how it would play out. I just knew I had someone in my corner who had done this before.”
The Role AVL Played: Strategic Clarity in Uncertain Times
With the seed of a new outcome in place, AVL stepped in to do what they do best: model the scenarios, structure a smart deal, and bring operational clarity to the table.
AVL:
Outlined multiple deal structures with pros and cons for each
Modeled financial scenarios based on future revenue
Served as general counsel and deal coach throughout negotiations
The result? A three-year earn-out agreement, tied to revenue, that allowed the founder to walk away with financial upside—without sacrificing the brand or values of the business.
The Outcome: A Payout With Purpose
Instead of shuttering the company, the founder exited with confidence—and a six-figure deal that respected the brand’s mission and impact. The business continued in new hands, and he was free to fully focus on the high-growth venture ahead.
“Being ready isn’t always about being aggressive,” he reflected. “Sometimes, it’s about surrounding yourself with people who’ve done this before—people who can help you see options you didn’t know existed.”
The Takeaway: Exit Isn’t Failure—It’s Strategy
This story is a perfect example of AVL’s “Be Ready” mindset. Even when it feels like the only move is to walk away, a well-designed exit strategy can create value, preserve mission, and open the door to what’s next.
Whether you’re scaling, pivoting, or sunsetting a business, AVL can help you:
Evaluate exit paths
Model potential upside
Build deals that honor your mission