Why exit planing is important for any business
Relying on an acquirer to miraculously appear out the blue and pay you want you think your business is worth has a very low chance of success. In fact 75% of all businesses never sell, they are closed down and the assets sold off or they are handed over to family or the management team for a nominal return. The next 17% of businesses sell for a disappointing sum, usually to the competition or to the management team in the absence of any strategic trade acquirers. Thismeans that only 8% of all businesses, that is ONE in TWELVE, sell for “par” or at a premium that satisfies the owners.
The most common reason that so few businesses sell well, is that they have not been prepared for sale and no thought or planning has been given to how a sale can take place and where a good strategic acquirer can be found.
How exit planning can help you build a saleable business
- Establish what you want to get for your business and when, and what you want to do after you have sold it
- Value the Business – now assuming it can be sold, then develop a picture of what the business must look like in order to be worth the value you want to receive
- Develop a strategy for filling in the gaps – whether by a tactical acquisition or by developing and growing the capabilities organically
- Develop your sales proposition, what you have to offer and what is valuable to an acquirer
- Develop an action-focused Business Plan to address how you are going to move the bushiness from where it is now to the point where it can be sold for the value you want
- Develop detailed budgets and cash flow forecasts
- Determine the funding requirements
What LGBA Exit Planning advisors can do to assist your business
We offer real life experience, strategic advice and tactical support. Our step-by-step approach provides you with support through every phase:
- Developing a value enhancing strategy
- Action-focused Business Planning
- Assistance with what follows next – a Business Support Programme to help you implement and deliver the plans
- Fund raising and acquisitions assistance
To find out how we can help you prepare your business for sale, send an email to firstname.lastname@example.org and one of our Exit Planning specialists will contact you directly.
More information on selling your business: