One day, you will exit your business and convert business equity into cash through a strategic or financial buyer transaction, merger, employee stock ownership plan, management buyout, family transfer, or an IPO. When you started your business you probably didn’t think about your business with the end in mind. You may be like many business owners that are too busy building the business and developing strategy to think about your exit strategy. But have you asked yourself? Am I doing all the right things to “increase company value” for the eventual exit?
The sooner you start to work on your exit strategy and increase business value the more likely you will have a successful exit that meets your financial and personal goals. Preparing for an exit takes time and the process should start as soon as possible. Executing an exit strategy can take up to three years of serious preparation, and if properly conducted will bring you the highest possible price for your business.
Whether you’re planning to sell now or not, every owner wants to increase the value of their business. So increasing business value with ‘The End in Mind’ is really the key for a successful exit.
Increasing the value of your business falls into several major categories:
- Keep Focused & Minimize Distractions
- Increase & Diversify Sales
- Improve Business Processes & Efficiencies and
- Increase Your Brand
- Develop unique products and services
- Build strong relationships with customers
- Create and protect intellectual property
- Retain strong and experienced management
Do these things and your business value can’t help but increase, and you will have a better chance of getting the highest price on your exit. Preparing to exit your business takes preparation, planning, execution and time. A lot of time. You will find growing your business is an easier task than getting through an exit. Lastly a word to the wise. Engage a qualified professional to take you through the process while you continue to grow and increase the value of your business.