A successful business exit is a crucial part of the journey for any SME owner…
…especially if you’ve poured your heart and soul into building the business over a long period of time.
BUT many SME owners fail to optimise the exit from their business, which can have a long-lasting impact on their personal and financial well-being… not to mention the business itself.
The most common mistakes I see…
Failure to plan. It’s easy to be so focused on running the business day to day. So much so, that taking concrete steps to secure a successful exit in the future takes a back seat.
Overvaluing your business. If you’ve built up a business and it’s your baby, then it’s not uncommon to believe the valuation is higher than a buyer is ever prepared to pay. But being realistic about the valuation well in advance of an exit, at least gives you time to increase the value of the business, to achieve the outcome you want.
Lack of succession planning. Some owners assume that a family member or the management team will eventually take over the business. Never assume.. and regardless, take early steps to ensure the business will run without you.
No post-exit vision. On a personal level, you’re going to need a compelling future beyond your exit, which requires some upfront thinking.
Procrastination. It’s all too common for business owners to delay taking action. But sticking your head in the sand will drastically reduce your chances of a successful exit within a sensible time frame.
Not seeking advice and support: Working with the right people, can accelerate your journey towards a higher valuation and a successful exit, whether that is through financial engineering, mergers and acquistions, or increasing the overall saleability of the business.
Without putting the right plan in place, the likely outcome is an underwhelming exit which falls short of your expectations – or an exit which takes years longer to achieve than orginally anticipated.