According to a number of recent surveys, including the Securian Financial Services survey, it’s estimated that less than 30 percent of business owners have an exit strategy. These figures are alarming given the inevitability of an exit, and the fact that most business owners’ accumulated wealth is tied to their businesses.
After years of hard work, sacrifice and unwavering perseverance, maximizing the sales price of the business should be a priority. For a majority of business owners, this will be the single most important financial transaction in their lifetime.
If an exit strategy was not implemented on the first day of operations, it is imperative to put one into action. There is no time like the present to sit down with a trusted advisor and develop a strategy that fits a business owner’s needs. Two to four years is ample time to identify the businesses value drivers, establish metrics, implement a tactical plan and transform the business into a highly saleable, A+ Middle Market business.
There are emergency exits; however, there are no excuses for exits without planning.