For those wanting to sell their business one day, it's critical to answer these
When we meet with potential clients a common question is what specifically will our deliverables be if they engage us? This of course is the right question to ask and our answer is simple. We prepare you to achieve a future euphoric exit event.
Our specific deliverable is to guide company ownership through development and execution of a plan that will help greatly increase the likelihood of achieving a future euphoric exit event. And at a very high level, here are the 4 areas that we help owners discover and prepare for. And these are the 4 areas that every company owner should think about today in preparing their business for a future successful exit event:
Exit Target - ask yourself -
- what is my desired gross valuation at time of exit that I want to receive from a third party?
- what is my desired timing for an exit to occur?
Valuation Gap - ask yourself -
- do I know what my business might be worth today to a third party?
- how does the current valuation of my business compare to how much I’d like to one day receive….how large is this gap?
Valuation Drivers - ask yourself –
- do I know what the top 5-7 “must have’s” that future acquirer’s will base their valuation heavily on when they look at my business?
- what is my company status/readiness to deliver on these “must have” valuation drivers?
Strategic Plan/Priorities - ask yourself –
- is our current business strategy audacious enough to close any valuation gap we might have in terms of what the business might be worth today and what ownership hopes to receive for it one day??
- is our team working on ensuring the “must have’s” will be in place when the acquirer’s come to consider buying our business, are these part of our strategic priorities?
There is no mystery to what it takes to prepare an owner and their company for a euphoric exit event. What it takes is addressing these 4 areas and using them as the basis for your exit preparation plan. Don’t reinvent the wheel here, get guidance from an exit planning organization so you can focus on getting to your euphoric future event.
