A GREAT BUSINESS EXIT REQUIRES 2 PLANS
Updated: Apr 29, 2022
A great business exit doesn’t just happen. It is a conscious transformation done well before the deal, with clear "Know to Grow to Sell" goals, planned action, executed well, producing the most options to deliver the maximum value when it’s time for your exit.
Leaving it to the last minute is a huge mistake, especially considering; that only 1 in 10 small-medium businesses sell as planned; that 85% of most business owners' net worth is tied up in their businesses; that 40% of small-medium businesses will be going up for sale in the next 5 years (creating an oversupply in the M&A market); and that 80% of businesses put up for sale don’t sell. If you can’t exit, what happens? What would be the effect on you, your family, your staff, your customers, your suppliers and your community? Don’t leave it to chance!
So how do you ensure a great exit? It starts with your plan. If you don’t have an exit plan already, then you need one ASAP. In fact, depending on the size of your business, you may need two plans. The article below outlines the two (2) plans, the Owner's Exit Plan and the Business Growth Plan, and how you can best prepare for your exit. If 2 plans aren’t a part of your strategic thinking already, then seriously consider them before you put your business up for sale. This is your call to action, be proactive and give yourself at least 2 years before you want to exit to plan and execute a maximum-value exit that gives you the most options, the greatest payout and the legacy you truly want from your business. In exiting your business, failing to plan is the same as planning to fail. Make sure you are the 1 in 10 who plan and execute to have a great exit.
I’d like to hear your thoughts on this, please share in the comments and pass it on. If you want an outside opinion on your exit readiness, and the things you can do to maximize value such as incorporating ESG, we have a pro-bono exit readiness assessment you can do in 5 minutes, that will give you some great insight, at no cost, no risk and no obligation. MExit – Value Builder PREScore - https://score.valuebuildersystem.com/prescore/proactv-business-solutions-inc/robert-welke
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