An exit strategy in business is a plan for continued success. But when you opened your doors, you weren’t necessarily thinking about not being involved in the future, and as your business met with more and more success along the way, often the event of your possible exit slipped further and further from topping priorities.
The fact is, though, that people and businesses evolve, and the plan when you started your business has no doubt changed often over the years. The exit strategy, then, is vital for your company – it must live alongside the culture you’ve established and the operations you’ve defined.
But when should you begin to plan for your exit? Well, it’s never too late, if you haven’t already begun to do so. But ideally, as early as possible. This helps you create a vision for where you see your business going, and it will help you realize that vision with a tangible goal to work towards.
Creating an exit strategy
Like we mentioned, it’s never too late. Now this isn’t with the view to getting out as soon as you can, but rather to ensure your business has a future that you have planned.
So, what is it that you want to accomplish? Consider these points:
You want your business to grow even more
Sometimes, in order for your business to evolve to the next stage, it will have to be in the hands of others. Merging your business with a company looking to expand is a strong strategy. They’ll be able to absorb your industry know-how and expertise, and expand into new markets and selling channels, for unthrottled growth opportunities.
Creating the strategy
Once you’re clear on where you see your business going with the exit strategy that’ll work for you, the next steps are to develop the plan:
Get your house in order
By this, we mean your business’s finances and contracts.
Make sure you know your business’s finances – expenses, profits, assets and liabilities. Also review your customer and supplier contracts. There may be issue that limit your ability to transfer your business to others. If you’re savvy in these areas, with your ducks in a row, you can essentially negotiate for the full price of your business’s true value.
Seek professional advice
As this is likely to be the single 1biggest financial transaction in your life you will need a team to support you through the process. You will need experienced advisors that are familiar with all aspects of mergers & acquisitions including: a transaction attorney, tax planner, wealth manager and an M&A advisor to take you to market and coordinate with the rest of your professional team to complete your transaction.
This is just a quick overview on how to develop a sound and seamless M&A strategy, culminating in your exit. Whether you’re seriously considering an exit, or you’ve just started out, and are looking to set a good strategy in place for the better future of your business, this is all simply part of your journey. Destined will be on this journey with you, so contact us today. We’ll guide you on that path to a seamless business transition.