A company that relies exclusively on the guidance of its owner creates a major risk, and the true value of your company is what a buyer is willing to pay for your business without you.
It’s time to start reducing this reliance on you and start putting a process in place to ensure your exit is achieved for best possible value.
Building the Right Team
Your best chance of having a smooth and successful business transaction is to put the right team together, which will consist of carefully chosen key employees and external advisors. Yes, the external members of the team are an added expenditure, but it will be money well spent.
For internal team members, it’s good to ensure that you confide in them by giving them more responsibility and ultimately less reliance on you when moving forward. Furthermore, having a secure and experienced team in place makes your company more attractive to buyers and ensures a more stress-free transition period.
Get Your Documents in Order
To give yourself the best opportunity, with the least amount of dependency on you in the event of a sale, is by preparing the right documentation for the business not only for buyers, but also to ensure your management team can make sound decisions and have a clear view of the processes that make your business run in your absence. If you take the time now to document your procedures and processes, it will pay off later when you negotiate with a buyer -This is crucial for a smooth and stress-free exit.
Exit Strategy – Make A Plan
Planning a solid exit will probably be the most important decision during your business’s lifecycle. You will undoubtedly improve the success of your exit strategy if your management team clearly understand your objectives, so they can work with you on the path to mutual success, and ultimately, without you.
Putting together an exit strategy can be a complex and intimidating process, which is why many business owners seek to partner with advisors who have the necessary skills and experience to navigate them through the various requirements.
Having a carefully thought-out exit plan for your business will help in reducing the dependency on you when it comes to selling, by allowing your team to handle things with ease and confidence.
When selling your business, it’s important to put a good team together and Venture Corporate Finance have a team of our own who can assist you with all aspects of your business sale and achieving your personal goals.
Venture Corporate Finance is a middle-market M&A advisory firm for clients planning to sell their businesses, raise capital, restructure, or grow with acquisitions. We provide independent advice and bespoke transaction solutions to meet their specific objectives.
For more information on corporate finance and M&A services, contact Venture Corporate Finance.