Proper Exit Strategy Planning
Most business owners fail to adequately plan a path for an exit strategy never mind creating a plan at all. What is common is to wait till they near retirement then hire a specialist to find a buyer, unknowing that metrics that investors look for when buying their business. Failure to plan ahead years before results in suboptimal price point for the business. One of the reasons we do financial modeling and forecasting is to not only maximize profits in the near-term but the long-term as well. Further taking the steps, as we view the business thru the eyes of the investors, necessary to prep the business in preparation for an exit strategy. One of the more common mistakes made is similar to what home owners do before they sell their house. Business owners "window dress" their business making cosmetic changes such as boosting short-term profits or making capital investments (like furniture) that is cosmetic in nature. Meanwhile they fail to realize that business are valued over periods of time not just a single year of boosted sales or profits. Businesses generally are more valuable if they are less volatile, more predictable, steadily growing, have sustained higher profitability metrics vs its peers among other things. This takes not only time to achieve, but is also judged over multiple years not just the current year a business owner decides to sell the business and retire.
That is why we partner with those involved in the selling process to assure a business is prepped years in advance of the actual sale. Contact is if you wish for us to demonstrate our 5 Step Process of Maximizing Profits & the Value of Your Firm. To sign up for email updates via https://www.charlotteconsultantservices.com/news-update.