Business exit plans should exist somewhere in space and time on every owner’s entrepreneurial journey. Not because your ultimate goal is to rid yourself of your business, but because sometimes, on that journey, it’s the next logical step for your business’ continued growth, and thus your legacy.
Also, it’s better to have that plan in place, regardless. To be prepared – just like everything else in business.
At Destined, we can help you put that strategy in motion. Whether you’re planning for a sale in this year or thinking about planning for your exit within the next five years, let’s get going on a sound vision and preparation, for when – and if – the time arrives.
So, contact us now for more on exit planning for business owners.
In the meantime, though, here’s a top-level guide on business exit plans, to get the cogs turning.
What is a business exit plan?
A business exit plan is a strategy an owner puts together to sell his or her business, or a portion of it, to potential buyers or investors.
If the business is making money, it’s a good way to diversify your wealth.
Here’s a very quick top-tip guide on how to start the process.
Money certainly can provide peace of mind for you and your family – and a prepared business can ensure a good deal and a speedy sale. So, the first step in the plan is to prepare your business’s financials. Get that house in order – your expenses, assets and performance data. No savvy buyer will proceed without the numbers, and if you can present a clear sight of yours, it’ll stand you in good stead to negotiate an offer that represents your business’s true value.
Like most business owners you probably receive inquiries every month (or every week) from other companies or private equity firms that express an interest in buying your company. In order to have a cogent conversation with these potential acquirers you need to have a clear vision of want you want for your exit both in terms of valuation and what happens with your business after a sale.
The top brass
Have a strong management team in place. Leadership is needed to make the sale and transition seamless. So, start transferring responsibilities to your management as early as possible, to make the change easier for all to bear.
Lastly, be prepared to tell your people once a sale is completed. The goal is to have a great, positive story to communicate why you’ve sold, to whom and what will happen next. Tell your employees, clients, suppliers and business partners. Scream it from the rooftops. If the deal was done for all the right reasons you can set everyone’s mind at ease – and set in motion transitions that won’t interrupt business. Plus, you’ll establish client touchpoints – so the change shouldn’t be as jarring for those continuing with the business.
So, these are just a few points to consider, if you’re planning an exit. The thought of an exit may be daunting right now, but it’s actually an exciting time. At Destined, we’re a collective of former business owners that have been through it all, and we can help you to a sale and exit that’s smooth and profitable for all.
Let’s work together.