Partners With Skin In The Game Is The Key To Success
What’s the key to achieving a successful exit from your business?
It’s taking the time to strategically craft the most profitable exit possible. However, this process is not something that can be accomplished in a few weeks alone.
This is where partnering with investors and M&A specialists, especially those who have a personal stake in the game, can significantly help you maximise the value of your exit.
Here’s why:
⚙️ FREE UP YOUR TIME. As a business owner, your focus should remain on running your business, rather than solely on the exit process. By partnering with the right kind of investor, you can keep your attention on the critical operational aspects while they handle the exit.
⚙️ INCREASE YOUR BUSINESS’S ATTRACTIVENESS. A high paper valuation is not enough; your business needs to be appealing to the market. This requires proper preparation, such as being Due Diligence ready and ensuring the business can operate independently from its owners. Partnering with specialists can help you achieve this efficiently.
⚙️ ACCESS MORE BUYERS. Simply relying on brokers who spam inboxes won’t provide access to a significant number of genuine acquirers. To attract interest from private equity firms, publicly listed companies, and other potential buyers, you need to play at a higher level and achieve the necessary scale. Partnering with specialist investors can help you gain access to a wider pool of interested parties.
⚙️ LEVERAGE THEIR EXPERTISE. Look for investors who have extensive experience in deals, strong connections, and the ability to navigate complex negotiation landscapes. They should be able to help drive your company’s value, maximise the final valuation, and guide you throughout the exit process.
⚙️ CUSTOM DEAL STRUCTURING. Experienced investors with M&A expertise not only strive for a higher valuation but also structure the deal in a way that is tax-efficient, minimises risk, and aligns with your personal goals.
⚙️MAKE IT PERSONAL. Exiting your business is an emotional process, as many owners see their business as their baby. It’s crucial to find investors who have a personal stake in your success, as this alignment of interests can lead to a more effective partnership.
⚙️ LIFE BEYOND THE EXIT. The value of the exit goes beyond the financial outcome for owners. Maintaining continuity for staff and customers, as well as planning for the next chapter in their lives, are top priorities. When putting a deal together, considering the owners’ post-exit plans is always an important part of the equation.
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