Don’t get me wrong…
There are many owners who wait far too long to exit their business.
But there are many more that rush their exit when it finally happens and make very poor decisions as a result.
Planning a successful exit can easily take a couple of years. More speed and less haste means you and your investors can:
⏱ LEAVE SOMETHING ON THE TABLE. Mapping out the opportunities for a buyer to add value to your business post-transaction makes it much more attractive. Quick wins make it more valuable to the right buyer.
⏱ BUILD CREDIBLE PROFIT FORECASTS. Potential buyers want to know how long it will take to see a return on their investment. Exiting too early could mean you can’t demonstrate the full potential of future profits. Meaning a lower valuation.
⏱ GENERATE MORE VALUE. There are easily 30 ways a business can create more value within 2-4 years, prior to an exit. Heading for an exit without executing a robust exit plan will always undervalue your business.
⏱ CREATE AUTONOMY. Having a strong management team that performs in the short and long-term, without owner intervention, is a major asset and attracts a higher valuation.
⏱ UNDERTAKE DUE DILIGENCE. Waiting for a potential acquirer to drive your due diligence process will put you on the back foot. You want to have this nailed prior to an exit.
⏱ KEEP YOUR EYE ON THE BALL. When business owners focus on the exit process, rather than the business itself, they get distracted. Which can result in negotiations getting drawn out and messy. Rushing the process and not partnering with specialist investors to acheive a successful exit, can end up being counter-productive.
⏱ SCALE EXPONENTIALLY. A solid growth trajectory is great, but if you’ve missed a trick around scaling your business, you’re also missing out on an optimal valuation. There are several ways to scale up in a relatively short timeframe. But most business owners miss this part out.
Your exit strategy is not just about selling your business, it’s about reflecting the value of your journey and future potential.
Most business owners who exit – only do it once. So get it right first time…