7 Obstacles Business Owners Must Overcome Before Exit
Let’s get straight to it.
If you’re eyeing an exit in the next few years, the odds are stacked against achieving maximum value.
I’ve seen low valuations derail exits at the last minute because owners didn’t take necessary pre-emptive action:
🚫 Leaving It Too Late to Plan Your Exit — The clock is ticking, yet many put off exit planning until too late. Failing to prepare well in advance risks stagnating growth, unpreparedness for due diligence, and missing valuation-boosting steps. Opportunities will slip away.
🚫 Lacking a “Grow and Exit” Mindset — From the outset, focus on building an exit-primed business, not just a lifestyle company. This mindset impacts every decision — from structure to operations.
🚫 Getting Fixated on Revenue Over Profit — Vanity metrics like topline revenue can be misleading… cash flow and profit are king for valuations. Buyers want predictable, sustainable profitability. High revenue without margins are mostly meaningless at SME level.
🚫 Lacking a Scalable Operating System — Lack of defined processes and infrastructure will put off savvy acquirers. Now systematise and automate core workflows to demonstrate the business can thrive without being owner-reliant.
🚫 Having the Wrong Management Team — A weak leadership team is a huge red flag. Buyers need confidence the right people can seamlessly continue driving the business forward post-sale. Be brutally honest about team gaps.
🚫 Going It Alone Without the Right Guidance — Even outstanding owners can sabotage their own exit through lack of experience. The financial risk is too great to “wing it”. Get the right advisory team to guide you to maximum valuation.
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