Timing is everything.
It’s a saying we have all heard before and when it comes to running a business, it rings truer than ever. Proper timing can mean the difference between success or failure. You invested a great deal of thought and planning into starting your business and growing it into a successful enterprise.
When you want to sell your business or pass it on to the next generation, what then?
Many business owners fail to look into their exit planning process until it is right in front of them. By that time, they are so close to their departure that they may not receive the best value for their company. This lack of planning can also result in the owners exiting at the wrong point in time in their company’s lifecycle.
So, when is the right time to exit your company?
There are a few steps to keep in mind when determining the appropriate timeline for exiting your business:
Determining which of these values is the most important to you will shape how the exit will look. Your definition of success determines many smaller decisions that are involved in the exit planning process.
Timing plays a key role leading up to the transition of your business. Selling too soon or too late can have a lasting effect on your organization and devalue the true worth of the company you have worked so hard to build.
The Bottom Line
Start planning early. Putting together an exit plan is not something that can be left to the last minute if you wish to receive the full value for your business. Create a timeline that fits your needs and incorporates your company’s life cycle.
The right timing doesn’t just appear out of thin air. Seek answers and know what areas are important to you. Your end goals and values should define how your exit strategy is created. Start now to plan your exit because as we all know: Time waits for no one.
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.