Do you have an exit strategy for your company? Do you know what you need to do to get the maximum value for your company? This article will give you six ways to maximize you company’s value.
This article addresses common misconceptions and mistakes that we have found business owners make when selling a company without an exit strategy in place. Recognizing these misconceptions and mistakes, and how you can avoid them, come from three decades of selling privately held companies. If you are looking at retiring and or selling your company in the next three years, this is a must read.
Having an exit strategy two to three years ahead of time allows you to maximize your company’s value.
I fail to understand how good business men and women can invest 20 – 30 years of work in building a company that has supported their family, provided for retirement, employed countless folks from the community, supplied a great product or service to their customer base, but when asked if they have an exit strategy for their business, they look you straight in the eyes with a blank stare – like you just asked for their first born.
Just recently, my partner Bill and I had been called by the president of a multi-state wholesale distribution business that has historic revenues in excess of $15,000,000 annually to meet with him and the board about selling their company. The President explained that their goal was to sell the business in the next 12 months as several of the majority owners were ready to retire. As Bill and I started to ask our usual questions regarding the business it became very clear that the owners did not have an exit strategy and had done absolutely no work in preparing the company for sale.
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