The key to a euphoric business exit is supporting the right narrative
Ask yourself this question – what narrative do I want to convey one day to attract a buyer for my company and am I building my business and its performance in a way that will support that narrative?
Let’s first define narrative. It is what your overarching message will be that you will use to attract and excite an acquirer to be willing to pay a premium for your company. As an example – “here at XYZ company we have built a solid business foundation that includes a unique product/service) offering that commands a high degree of customer loyalty and this is manifested in a high degree of predictable, profitable revenue streams. Our market is large and continues to grow and we are well positioned to continue our strong performance.”
When the day comes that you might want to express this type of narrative, you want to be able to show the data to back it up. In this example narrative, did you build a business that offers a unique portfolio, can you prove high customer loyalty, does your data show you do in fact have predictable revenues and does it show that you in fact offer profit levels at or preferably above the market norms for your industry?
What you want to avoid is waiting for a few more years to go by and decide to sell your company only to realize your narrative isn’t as powerful as you wanted it to be. Or that you realize you didn’t deliver the performance and results that would back up your desired narrative with supporting data.
This is why we work with business owners a few years prior to actually beginning the sale process. We help them think through what an exciting narrative will be for their most likely future acquirer and help them develop the strategy that will get their business to support delivering on that narrative. Use time as a friend in this critical aspect of preparing a business for a future euphoric exit and start giving thought to your future desired narrative today.
