The Silent Killers Which Could Destroy Your Exit Plans
Gavin Gibbons
Private Investor | Adviser & Partner On Scaling Your Business To Exit | Mergers & Acquisitions | Managing Partner at Next Level Ventures
I know countless businesses, where the owners have been on course for a successful exit.
But for various reasons, everything has fallen apart before the finish line.
The final stages can feel like a marathon. And sometimes the exit process can take many months - or even years to complete.
Yes, sometimes a failed exit is beyond your control, but there are things to watch out for, to reduce the risks. Here are just a few of them…
1?? VOLATILE VALUATION
During the exit negotiation process, the perceived value of your company can fluctuate. Variations in your monthly financial reports, economic headwinds, negotiating tactics of buyers and a bunch of other things can all have an impact. Being on the front foot and having an effective plan can lower the risk of things going wrong.
2?? DUE DILIGENCE FAILURES
When a potential buyer shows interest, they'll want to scrutinise your business - so you need to be ready. If you wait until you’ve started negotiations, it will feel even more rigorous, time-consuming and invasive than it should. Make sure you know exactly what’s required for DD - and have it way before you need it.
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3?? GOLDEN HANDCUFFS
Buyers often include 'golden handcuffs' in the deal structure to ensure key team members (including yourself) stay on beyond the exit. The realisation that you may feel trapped and without any control, once the deal completes, can lead some owners to sabotage their own exit. So, negotiate these terms wisely.
4?? ROLLERCOASTER RIDE
Selling a business is more than a financial transaction. As you approach the final stages of an exit, you might feel a rush of emotions – excitement, anxiety, relief or grief. Anticipate and prepare for these feelings to ensure a smoother, less stressful transition.
5?? POST-EXIT BLUES
And talking of transitions, once the hustle and bustle of the exit are over, make sure you have a clear plan beyond it. The majority of business owners have no problem figuring this out. But without a clear visualisation of the future, it can leave owners questioning the point of an exit, right up until the last minute.
Do you find it difficult to increase your influence with your team members? | Leadership coach for team leaders | Author of leadership & personal growth books | Creator of leadership & personal growth online courses
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