We’ve learned a thing or two in our experience facilitating more than 400 acquisitions, divestitures, and mergers over two decades in business. We’re excited to share what we’ve learned–and what we continue to learn–from our real-world transactions.
Before selling, it is important to understand what your business is likely to mean to the market, not just what it means to you personally. That usually involves getting clear on financial performance, identifying risks such as customer concentration or owner dependence, understanding likely buyer fit, and thinking through tax and deal-structure implications early. The strongest outcomes are rarely accidental. They are usually the result of preparation.
What is an exit strategy for a business owner?
An exit strategy is a plan for how an owner will transition out of a business in a way that aligns financial goals, timing, and personal priorities. That may involve a third-party sale, internal transition, family succession, recapitalization, ESOP, or another path. The right strategy depends on more than valuation. It also depends on what kind of future the owner wants for the business, the people in it, and their own next chapter.
How do I maximize the value of my business before a sale?
Value is usually built before a company ever goes to market. Owners can often improve outcomes by reducing dependence on themselves, strengthening management, improving financial visibility, addressing concentration risk, documenting key processes, and making the business easier for a buyer to understand and operate. In many cases, the goal is not just to improve performance, but to make that performance more transferable and more credible in the eyes of the market.
When should I start planning for an eventual sale?
Earlier than most owners think. Ideally, exit planning begins well before a transaction is imminent, so there is time to address weaknesses, improve positioning, and make decisions thoughtfully rather than under pressure. Even when a sale is not immediate, early planning can give an owner more options and a stronger hand later.
