Maximising the valuation of your business and getting the best terms…
…are understandably where the exit planning focus will be.
But it's also important to have a practical transition plan for continued success as you hand over.
A few thoughts around post-exit planning:
> ONE VERSION OF THE TRUTH. And I don’t mean inside your brain. Document your knowledge so that continued operations don't depend on a small detail you haven’t passed on.
> NURTURE A No.2. Identify or bring on a MD OR COO to oversee continuity.
> BE OPEN WITH THE TEAM. But at the right time. Transparent comms will help retain your talent throughout the transition.
> CONTINGENCY PLAN. Unexpected things will happen. If a key person leaves at a critical moment in the process, have a plan to cross-train others and backfill critical roles.
> WHAT HAPPENS TO YOU? This might be in flux till later in the process. But get a grasp on the acquirer’s expectations of you and how that’s linked to your financial incentives.
> ASK OTHERS. Save time and avoid costly mistakes by getting support from those with more experience.
> START EARLY. Waiting until you’re ready to exit is far too late.
Preparing for a smooth and accelerated exit takes time - and requires you to be methodical in how you approach it. - during that time…
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