The Difference Between Success And Failure: Exiting a Business
Many business owners have found themselves in a position where they wanted to sell their company before the COVID-19 pandemic hit, but have since put their plans on hold due to the economic uncertainty caused by the pandemic.
However, delaying an exit to restore past levels of profitability may not necessarily guarantee an ideal outcome. To ensure a successful exit, here are a few things to keep in mind:
💼 Identify the right buyer upfront — Selecting the right buyer can make a significant difference in the amount of money you receive for your business and the time it takes to complete the sale. Choosing the wrong buyer can leave money on the table, add time to the process, or even prevent the sale from going through.
💼 Focus on a run-up — It often takes established businesses 2–4 years to turnaround, grow, and scale up to a successful exit. Therefore, it’s crucial to have a robust plan in place and give yourself enough time to become exit-ready.
💼 Partner up — To accelerate the time to exit and optimise your result, consider seeking the right support and guidance. This may include experienced investors or M&A specialists who can help you navigate the complex process of selling your business.
💼 Consider life after exit — Decisive business owners have more successful exits than indecisive owners. Having a clear and compelling vision of your life beyond an exit can help you stay motivated and focused on your goals. Uncertainty about the next chapter can lead to indecision, which never ends well.
By following these basic principles, you can accelerate your journey towards maximising the end valuation of your business and making it more sellable. Both of these factors are equally important.
#SME #BusinessSale #Mergers&Acquisitions #ExitStrategy
