There is a ton of stuff to get right when thinking about an exit from your business…
Yet some owners completely overlook the most important constraints to achieving a really successful exit:
🔸 WHERE’S THE VALUE?
Many business owners of established companies fail to grasp what really drives the value in their business. They might understand part of the equation, but lack the genuine perspective of a buyer or investor. Without it, maximising the value of your business will be guesswork.
🔸 PLATEAU EFFECT
Part of this effect is psychological. Owners simply get trapped in their latest comfort zone. But part of it is also structural, as the next level of growth often requires system changes, whether that’s people, funding, processes or access. And an average growth curve will be less appealing to the market.
🔸 POOR PROJECTIONS
Lacklustre financial projections – or projections which are not credible, will impact investor or buyer confidence and reduce the perceived value of your business. Credibility comes from track record and hard evidence of likely future performance. So missing your targets during exit negotiations will also work against you.
🔸 LACK OF KNOW-HOW
You don’t know what you don’t know. I regularly meet business owners who think that ‘clever’ accounting is the best way to maximise the valuation of their business. Preparing for a successful exit takes time and bringing in the right mix of outside expertise and support can make all the difference.