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Insights > Keys to Exit Planning in the Current Environment – Part II

Keys to Exit Planning in the Current Environment – Part II

By Generational Equity

Exit Planning Keys

A few weeks ago we published an article on the keys to exiting your business in our current economic situation. It was so well received that we decided to expand on the theme and, in discussing this with some of our dealmakers, we wanted to emphasize one vital component of exiting successfully given our turbulent times:

  • Make Your Business Buyer Ready by Reducing Perceived Risk for Buyers

Although reducing the potential risk factors that buyers may see in your business is vital during any economic cycle, it has become especially important in today’s world. The important thing to do is take a critical assessment of your operations today from a buyer’s perspective and take steps now to begin addressing these issues.

The real important thing to keep in mind is that buyers are buying your future, not your past. By developing and implementing strategic and tactical growth plans, even while marketing your business, you can potentially positively impact your value. And the really great thing is that these are usually not extremely difficult risks to address.

Based on decades of dealing with professional buyers, the items that can often negatively impact deals closing with a premium valuation fall into five common strategic areas that you can focus on:

  • Excessive customer concentration
  • Excessive supplier concentration
  • Excessive dependence on you, the owner who may be exiting
  • Lack of a middle-management team
  • Inadequate financials

Now this list may look daunting, but if you take each one individually, and work on the ones that are affecting your specific business, you will make great strides in building a buyer ready business.

We are passionate as a team in helping business owners create strategies that aid them in eventually achieving the maximum value for their business. However, we also recognize that for some of you, the ROI of working on the areas listed above, given our current environment, simply makes no financial sense, and you are ready to exit soon.

No matter where you are on the exit planning continuum, our professionals are here to guide you. The most important first step is to plan on attending one of our complimentary, and very educational, business growth strategy/exit planning conferences.

We hold these throughout North America and are convinced, based on the 80,000+ business owners who have attended over the years, that you will gain a substantial amount of new knowledge that will guide you on your next steps.

To learn more about our services and how we can help you navigate the stormy waters we are now in, please use the following links:

Carl Doerksen is the Director of Corporate Development at Generational Equity.

© 2020 Generational Equity, LLC All Rights Reserved

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Tom Staszak is one of the most professional people I have dealt with in my last forty years of business. You’ve got a great group of people and you have built a truly professional organization.
Michael J Polarek, President, Paragon Packaging
The process was much more involved than I expected and your help, experience and advice was a big factor in making the negotiations go as smoothly as possible.
Terry D. Wickman, President, Keytroller
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Andy Graham, Vice President, Modern Heating & Plumbing
Bruce and I wanted to take this opportunity to thank Generational Equity for assigning Musa Jagne to our transaction. In Bruce’s words, “Musa did one hell of a job for us!”
Karen S. Williams, CFO, BW Manufacturing
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Terry D. Wickman, President, Keytroller
We knew it would be a difficult task to have someone really understand our business and our market, prior to researching a possible buyer, so it was imperative that we found someone of your caliber, with definite proven experience in this area.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
Generational Equity’s assistance was invaluable in compiling and marketing our business.
Bil MacLeslie, CEO, ipHouse
I would like to thank you and your firm, Generational Equity, for being our valued advisors in our journey.
Bil MacLeslie, CEO, ipHouse
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Robert Evans, President and CEO of Mealtracker Dietary Software
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Michael J Polarek, President, Paragon Packaging
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Jay Dinnison, Owner of Sharpe Mixers
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Larry Moore, Owner, A Company Portable Restrooms
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Bil MacLeslie, CEO, ipHouse
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Pete L.
Your wisdom and experience were invaluable to me during this once-in-a-lifetime transaction.
Ralph Noblin, President of Noblin & Associates
We are very happy with the end result, and are very happy to be able to move forward with all of our future growth plans.
Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
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Robert Evans, President and CEO of Mealtracker Dietary Software
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Rick Nowak, President/CEO, Kurz Electric Solutions, Inc.
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Karen S. Williams, CFO, BW Manufacturing
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Andy Graham, Vice President, Modern Heating & Plumbing
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Larry Moore, Owner, A Company Portable Restrooms