When you own a business that provides a service or product, you know the importance of timing. You have probably experienced a mistimed product launch or a delayed service opportunity. With the perspective of time, you can probably look back on those "mistakes" and identify the lessons you and your team learned.
Timing also applies to the sale of your business.
Many business owners wait too long to begin their exit planning. Remember, it generally takes between 12 – 18 months to implement strategic exit planning inside your company. When an owner fails to create and implement a strategic exit plan, there are at least two consequences:
So, when is the right time to exit your company?
To create a strategic exit plan, some of the steps to remember include:
Determining which of these values is the most important to you will shape how the exit will look. Your definition of success defines many smaller decisions that are involved in the exit planning process.
The Bottom Line
Start planning early. Creating a strategic exit plan cannot be left to the last minute if you wish to receive your business's full value. Create a timeline that fits your needs and incorporates your company's life cycle.
Consider what a buyer looks for in a prospective investment. Looking at your company through a buyer's eyes helps you identify the areas that need improvement, upgrades, and consistent processes implanted.
The sale of your company is a process, not an event. It takes time to incorporate strategies and upgrade your company's critical areas, determine what a successful exit looks like to you, and create a smooth transition.
It's all part of Growth to Exit®.
To learn more about creating a strategic exit plan, please visit GrowthtoExit.com. Over 12 weeks, we teach you what a buyer looks for inside a company and the steps you can take to ensure the buyer likes what they see. Pre-sale planning is essential to a successful exit.
Your company is the product. Growth to Exit is the process. The buyer is your customer.
THIS INFORMATION IS FOR GENERAL INFORMATION ONLY. IT SHOULD NOT BE CONSIDERED LEGAL ADVICE AND DOES NOT NECESSARILY REFLECT THE OPINIONS OF TSG PUBLISHING. YOU SHOULD NOT ACT ON INFORMATION RECEIVED FROM GROWTH TO EXIT® WITHOUT FIRST SEEKING ADVICE FROM YOUR LEGAL COUNSEL.