Exit Strategies

Every business owner and business should have an exit strategy. In fact, there is often more than one strategy, each of which is likely to have a different impact on valuation and ultimate outcome. We often tell our clients that having a less than optimum exit strategy is better than having no exit strategy at all. However, business owners often leave exit strategy development until it is too late, resulting in poor execution and lower value.

Consider that in the case of a health issue, family members and trusted advisors will need important and timely information including templates for approaches to business value; identification and remedies for certain business issues; identification of potential purchasers; development of potential strategies that involve existing key management team members both on a short term and long term basis.

Trusted advisors and family members are generally not comfortable with developing or understanding the initial valuation template. Lack of understanding of value often leads to valuation and deal structure mistakes, which can be costly. Trusted advisors and family members will likely be dealing with potential buyers who are much more sophisticated and who have much more knowledge about the industry. It is important that you attempt to create a level playing field.

Email Norman Seawright, CA at norm@newcap.net to set up a no cost introductory exit strategy meeting. We are not business brokers! We are expert consultants who work closely with our clients to ensure a successful transition process for their business.