Exit your business, reap the rewards
Exiting your business is one of the biggest decisions you will make in your life. Moving forward at the right time, under the right guidance, could also make it one of the greatest. Exit planning is all part of the M&A process but because this term is widely misunderstood, many people don’t understand exactly what’s involved.
Selling a business is a process not an event. In fact, there’s an art to putting the right strategy in place to see that you get the most out of your business. When you engage with professionals, it can be a relatively straightforward process and one of the most effective ways to ensure your business achieves its maximum value. Whether you’ve been in business for five years or fifty, there comes a time when every owner starts to think about moving on. Could now be the time for you to put an exit plan in place?
Exiting a business all starts with knowing what your company is worth. You know the value of your house and your car – why not your greatest asset?
Evaluation professionals will look at your business under the microscope, recast your financials and forecast your growth. Each of these has the potential to reveal hidden value and could contribute to its overall worth.
Are there areas of your business that could be improved? M&A professionals will identify any opportunities to increase value and, depending on whether you’re ready to exit today or in five years’ time, your next step will be to go to market.
At this point, the professionals draw up a comprehensive document that tells potential investors or buyers critical things they need to know about your business without revealing sensitive information until a potential buyer signs a non-disclosure agreement. Your company will be marketed to the widest possible market, including private equity firms, family offices, offshore buyers, corporate strategics, or individual investors.
Once your business begins to attract offers, negotiations can proceed, all the while keeping in mind your future needs and requirements. The importance of having a professional oversee the process is vital for a number of reasons but especially because sometimes the most obvious investor isn’t necessarily the right one.
When all parties are happy with an offer that’s been made, the crucial stage of deal structuring can begin. By this point the deal makers will have a full understanding of your professional and personal situation, which is why they’re able to broker the best deal for you. The process is always tailored to your business and industry; with the guidance you receive influenced by current market conditions and other external factors.
Exiting your company has an enormous learning curve, but with M&A professionals by your side, you’ll receive all the information and direction you need to move your business forward with confidence. Why not join us at one of our complimentary conferences and find out more? You’ll learn about each stage of the process in more detail, so that when you’re ready to exit you’ll be fully prepared. Whatever your goals, wherever your business is headed – it all starts with Generational Equity. We’ll get you there.