Posts tagged with: prepare your exit
When it’s time to get out, you want to know you will walk away with the maximum value possible for your business. To do that, you need to demonstrate the value in every corner that the buyer will want to pay for.
How can you showcase the value in each of these areas in your business?
- Financials Recasting – Often, this is a view of your business that your CPA can’t see. You want to look at all assets, not just financial statements used to minimize tax obligations.
- Market Positioning – Current market analysis and competitive research can be used to validate your 3-5 year projections.
- Pro Forma Financials – Forecasting growth and accelerated sales will appeal to your prospective buyers.
- Valuation – Know what your business is worth and demonstrate that value long before you enter negotiations with a potential buyer
- Identifying Optimal Buyers – The more you prepare your business to appeal to your ideal buyer, the closer to your maximum valuation you’ll be able to see.
- Marketing Materials – Renewing company branding and marketing materials and website, adding video, etc., puts a fresh face on the business – curb appeal always commands more value.
- Multiple Buyers – Making your business buyer ready and buyer attractive, and clearly identifying who would be an ideal buyer prepares you to recognize buyers even if it’s sooner than you thought possible. When you structure the business and your exit plan to suit your ideal buyers, you will have them outbidding each other to acquire your business for top dollar.
- Confidentiality and Timing – When you are always building your business for maximum value – not just because you want to exit fast – you are prepared to consider or reject buyer proposals long before you need to get out. It makes the timeline and milestones for exiting easier to keep confidential.
- Due Diligence – When you do your own due diligence and resolve any flags it raises before you talk with potential buyers, you get to showcase your business in the best light – for added value – eliminating possibilities for them to find flaws that would bring down that targeted highest valuation.
- Deal Structure – When you start planning your exit early, you can explore many more options, variations on those options, and then implement systems and strategies to get you the deal structure you want, so you don’t have to settle for the deal the buyer offers.
When you prepare your exit all along the way, you claim back more leverage at the negotiation table. That creates more options, flexibility and opportunities to maximize value for you in getting out.
If you would like to learn more about maximizing your value, click here and take a look at our library of articles written to help you build and exit your business for highest value.