Looking to Exit Within a Year? How to Start Prepping Now

25+ years’ experience helping owners build and sell their companies at high multiples has given me a unique perspective on the challenges and opportunities business owners have in this sellers’ market.

In this webinar, I give an overview of how and why business owners, shareholders and their boards looking to exit should prepare their company NOW to ensure they command top dollar when they go to market.

You can watch the webinar (a speedy 30 minutes!). No spare time? Here are the highlights:

1. It’s a seller’s market. There is an ocean of private equity cash chasing a limited number of investment targets.?That's why multiples have exploded over the past 5 years and are not coming down. Rejoice, owners!
2. Investors, especially financial buyers like PE funds, base valuation on EBITDA over everything else. Before you go to market, do everything you can to better position your company, expand your earnings. With PE funds paying 10x or more on EBITDA, improving your earnings by even $500,000 or $1 million can mean a big difference to you and your shareholders when the wires hit your bank accounts.?
3. A deal will take longer than you expect. Diligence just takes longer, requires more. Data rooms are fuller. You need to be ready, but the good news is you have time to shore up anything that needs a boost before locking in a deal - and your team will present itself with greater competence.
4. You have to field a full team. If you’re going to market, everyone has to be on board. Every family member, shareholder, and business partner as well as your lawyers, accountants, and wealth managers need to be ready. Otherwise, it’s like trying to win the World Series without a center fielder.
5. You need your own Quality of Earnings report. Yes, the buyer will commission their own QOE as part of diligence. Commissioning your own QOE on your company’s financials will allow you to enter the market forewarned and fully armed and dangerous. Yeah, I know GAAP is GAAP, but if there are any concerns, don't go in surprised. As a wise mentor once told me, "I know it says in the Bible that the lion shall lie down with the lamb. I still want you to be the lion, not the lamb."
6. Quick shameless commercial: Deploying a full team to get you the best result in many cases now means taking on additional temporary leadership. The help you need is available. InterimExecs RED Team (Rapid Executive Deployment) have vast experience prepping companies for sale at high multiples. And by contracting with a fractional or interim executive rather than a full-time hire, you get all of the expertise without the long-term commitment, severance or benefit costs. And any cost associated with the fractional or interim is part of deal fees, not a permanent hit against your historic EBITDA. Good Hunting. www.InterimExecs.com