Avoid committing "assumicide" as you prepare your business for a future euphoric exit event
When we assume, we commit “assumicide”. And to achieve your future euphoric exit event with your business, the last thing you want to do is make assumptions about your readiness to excite an acquirer that don’t actually play out when exit time comes.
Business owners often make assumptions in areas of their company where they have blind spots. These are aspects of their business that are ripe for improvement but that they are blind to seeing or are aware of, but turn a blind eye to them. Here are some of the most common blind spots we come across early on when engaged by new clients. Ask yourself if any of these are potential blind spots in your company:
- The belief that when the acquirer sees your strong revenue and profit, they will overlook anything else of concern and still want to pursue buying the company with a strong offer.
- Minimizing the impact you have on your business as its owner. Ownership believing they can step aside and the acquirer will know how to fill any void created in experience, knowledge, industry expertise or even where all the ideas come from that help move the business forward.
- That weak members of your management team won’t negatively impact the valuation placed on buying the business. The belief that a weak senior member of your team won’t be seen by the acquirer during their due diligence or if they are aware, they won’t let it impact their valuation.
- Organization culture issues that you as ownership know exist but have turned a blind eye to and the belief that an acquirer won’t see it as a problem.
- Lack of having any sort of documented strategy for the business and the belief that the potential acquirer will still be willing to pay you a premium for the business.
These are just a few of the common assumptions that we see private company owners making and turning a blind eye to. Ask yourself, where could the blind spots be in my business and if I uncover and address them, could I accelerate the valuation that an acquirer might place on my business one day? Don’t assume you don’t have blind spots, engage with third party expertise in this regard to help you take an independent look at your company. Address any blind spots today and enable your euphoric exit event tomorrow.
