Plan Backwards & Execute Forward.
Comprehensive exit planning will improve your key value drivers, make the company more attractive for buyers and maximize the exit value. A truly effective plan will take several months to five years to implement.
Your personal goals set the framework for the entire process.
Whether your objective is an outright sale, strategic alliance, or a transfer of the company to management or family, we will help you clarify your personal goals and objectives so that an effective deal structure is defined that offers the best path forward. Planning is critical to a successful outcome and we will help you focus on managing circumstances that have the greatest impact on your business and personal goals, and minimizing the risk of occurrences that you cannot control.
The best way to approach exit planning is to plan backwards and execute forward. Look into the future and decide the day you would like to finally leave your company. This would be after you have sold the company and fulfilled any obligations to the purchaser after the transaction closes. This includes any continuing employment, consulting, and non-compete agreements. Once you have identified this date, start planning your exit. Here’s the timing of your plan:
Transition and exit planning increases the opportunity of selling your business from 30-50% (industry standard) to as high as 95%. For every dollar spent to improve a business, sellers could see a return of $3 to $6. Identifying these changes can take as long as two years or more, so it’s critical to start early.