Developing an exit strategy is influential in determining the value and growth of your business and offering you the most financial reward. To exit with the most benefits, you should consult a certified exit planning advisor or business coach who will guide you in cost-effective business analysis, financial preparedness, and preparation.
Why You Should Start Creating an Exit Strategy Today
Knowing how you will exit is advantageous for several reasons:
- You will become driven to earn higher sales revenue, increase business value, and improve your productivity.
- You will have confidence in your dealings with stakeholders.
- You will know how much involvement (if any) you will have in your business after your exit.
- You and your business are secure if your exit is involuntary.
- You will receive optimal financial benefits while minimizing potential losses by choosing the best compensation plan based on a professionally developed assessment.
What Are Some Business Exit Strategies?
The choice of an exit strategy depends on the values and personal, professional, and financial goals of the business owner, including the finances, market value, and profitability of their business. An exit strategy is highly individualized, making it crucial to have a professionally developed plan – details, stipulations, and financial records are all taken into account.
Some strategies I explore with my clients to determine the most optimal exit include the following:
- Initial Public Offering (IPO): an exit strategy where a business moves from private to public by selling shares on a public stock exchange to raise capital, sales, and revenue.
- Selling to a buyer: you can strategize selling your business to a high-potential third-party buyer and maximize your financial return.
- Mergers and acquisitions involve the merging or consolidation of businesses to form a new one or one buying the other.
- Employee stock ownership plan (ESOP): the management team purchases from within the company and obtains ownership over time, giving the business owner more control over the company and transaction process until the complete transfer of ownership.
- Choose a successor: choosing a family member, friend, or manager and preparing them for the transition to ownership.
To determine the best exit strategy, we will assess your current exit readiness (if applicable), ideal compensation, and stipulations.
Building a Successful Exit Strategy
- We will identify your goals to select the appropriate exit strategy.
- My Brokers Opinion of Value report will inform you of your business worth if sold to a third party using three different valuation methods.
- My Projections Report creates a 5-10 year financial projection of your business: these assessments of your finances and profitability are keys to developing and implementing a strategy for valuation improvement.
- Raise your sales profit and revenue to increase your economic value and buyout worth. We will work on creating sales strategies to promote commercial growth.
Realtors will create an exit strategy that aligns with their personal and professional goals by booking a consultation with me.
