The thought of “cashing out” lingers in the back of every business owners’ mind. Confronted daily with time constraints, market volatility, hawkish competition, profitability and growth objectives, and employee satisfaction, owners often neglect taking the necessary actions to establish a viable exit strategy. There are simply not enough hours in the day.
However, business owners must realize that inaction creates vulnerabilities and few alternatives at the time of transition. A practical exit strategy for a business will identify and correct problematic issues, determine and enhance the value drivers, accelerate growth, and increase profitability. Businesses are the most valuable asset of a majority of business owners, and an exit strategy is too important to disregard!
Business owners preparing for a liquidity event well in advance of its execution will insure maximum value from their M&A transaction. Every buyer will eventually become a seller; planning for the liquidity event should begin on the first day of operations!