Let’s face it. You didn’t build your business to run it forever.
At some point, you’ll want to cash in your chips.
Yes, I’ve met one or two who literally want to die with their boots on, having never created a payday event… but most business owners want to protect their financial security and the future stability of the business itself.
So I always tell business owners to give themselves a good run-up to their exit – and I’m talking years not months.
Your exit strategy isn’t just about how you leave. It’s about maximising the value you’ve worked so hard to create.
So, what are your main options?
🔹 Management Buyout. The chances are, if you’re thinking about an MBO, it’s because you already have a highly capable AND willing team in place. The questions then become about additional management support post-exit and how to fund the the deal, which is where we typically get involved.
🔹 Trade Sale. Becomes interesting when a larger player stands to gain tremendous value from acquiring you. Your job then becomes identifying and engaging the acquirer who has MOST to gain and then amplifying their potential gain BEFORE your exit to maximise valuation. It’s not always the best move when you want to protect your existing team and legacy… the acquirer might have other ideas.
🔹 Public markets. Unparalleled liquidity when it comes to exiting – or even acquiring other businesses to increase your value. But added financial scrutiny and regulation are not for everyone. I know too many founders who ultimately decided to delist, so be totally clear about your reasons from the start.
🔹 Private Investment. Whether private equity or private capital of any sort. As private investors, we tend to be more flexible around the exit structure and transition period. Protecting and preserving the company legacy is also high up our list.
Whatever exit route you choose, fortune definitely favours the prepared.
#nextlevelgrowth #exitlaunchpad