All exit strategies are different
When is the best time to exit? What’s the best way of preparing for that exit? Your exit strategy is going to be different from everybody else’s, because it’s such a personal decision. Your own exit strategy will revolve around your personal circumstances, and around your personal goals.
Timing and preparation
Business owners should run their business with exit strategies firmly in mind. But very few do.
Exiting a business is always a personal decision, and the timing of that exit will differ from owner to owner.
But all business owners will have to consider exit strategies to take into account certain questions common to all exits.
For example, how much should they sell their business for in the first place?
Once they’ve sold their business, what next – a comfortable retirement, or the excitement of starting up another business?
Ideally planning an exit strategy should start between three and five years before the exit date, in order to prepare that business for sale.
Is the business ready to sell?
What kind of sale are you looking for? An asset sale, or will that sale be based on income?
What do you need to do to strengthen your business to ensure the maximum possible return?
Many business owners working on their exit strategies start testing the waters while still getting their business ready for sale.
One of the ways of testing the waters is to have buyers look the business over. After all, you’ll be selling your business to a buyer with similar interests at some point. And this way you’ll be getting important feedback about the strengths, weaknesses and opportunities your business will have to offer when the time comes to sell for real.
What WhiteEdge can do for you
Once most business owners make the decision to sell, they find they don’t have the luxury of waiting for those ideal three to five years.
Since most company sales take between six and nine months, there’s not a lot of time to develop the business into one that’s attractive to buyers.
As an M&A firm, our research and initial assessment report will point you in the right direction so you can start making your business as attractive to buyers as possible.