Working with the right partners can make all the difference in getting the best outcome from your exit.
And the process starts months or years before the exit itself.
Whatever the precise type of partner you choose: minority shareholder, investor, advisor or M&A specialist (or a combination of all of the above)… they can bring objectivity, support growth opportunities, guide you towards a maximum valuation and look after your interests when it comes to identifying and securing the right buyer for your business.
Here are some thoughts on finding the right partners for supporting you on your path towards a successful exit:
🔹 DEFINE YOUR NEEDS. First, you need clear requirements related to what you want to achieve. Then you need clarity on your capability gaps around delivering a successful exit.
🔹 WIDE NETWORK. Beyond the immediate partners and investors you work with, you will also need an expansive network to leverage, related to scaling your business, attracting the right buyers and negotiating your exit. Look for partners with the right connections and a broad network.
🔹 RELEVANCY. Not all the capabilities you will need are sector-specific. After all, you’re the subject matter expert when it comes to your own business. But having partners who understand your industry and its nuances or have a specialist they can bring in when necessary, can rapidly accelerate your journey.
🔹 RECENCY. You’re also going to benefit from working with partners who are doing lots of deals right now – and in the recent past. The commercial landscape is changing fast and you don’t want ‘rusty’ partners.
🔹 MEET F2F ASAP. Chemistry is important with partners. Everyone needs to like, trust and respect each other, so you can focus on getting stuff done. Getting face to face early on, helps you reach a decision about ‘personality fit’ sooner rather than later. If your gut tells you something isn’t right, trust your gut.
🔹 INCENTIVISED TO GET YOU RESULTS. Failing to accept that everyone needs to be incentivised won’t end well. So long as the owners achieve the successful outcome they want, partners who can make it happen, should be incentivised to do just that. Otherwise the whole thing falls down.
🔹 AVAILABILITY. You might have ONE business you wish to exit in the years and months ahead. Minority investors, M&A specialists and external advisors will have SEVERAL businesses and have limited bandwidth at any one time. Leaving partnering decisions to the last minute, risks not securing the right partners.
🔹 START EARLY. Engage partners as early in the process as possible, so they can get things moving and maximising value from day one.
Surrounding yourself with the right expertise and experience pays dividends – so take the time to choose what’s right for you and your business. Then, don’t look back…
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