“Patience is the companion of wisdom” – Saint Augustine.
Enhancing the value of a business and ensuring it is ‘buyer ready’ is often the longest phase of the exit journey. That’s why you should take people’s estimates of ‘5+ years’ to achieve an exit with a pinch of salt. If you lay this groundwork early and continually focus on building your company for an eventual exit, you can save a significant amount of time down the road.
What does this mean? It allows you to time your departure better, and engage with an M&A advisory firm when the market conditions are ideal.
There are still many steps owners have to take, discussions to have, and hurdles to jump before it’s the optimal time to exit. These can be prolonged in several ways:
- Is the owner mentally prepared to exit his/her company?
- Are the company’s financials accurate and documented?
- Is there a robust management team in place to manage this transition?
- Have ideal buyers been identified and approached?
From the time it takes to target, engage and attract prospective buyers, to the questions to answer in due diligence, the journey to exit can be a real test of patience. Therefore it is vital to have a trusted, experienced M&A advisor by your side. They’ve walked this journey countless times before and know the best way to navigate it!
Investing in an experienced team supporting your exit strategy helps ensure that the patience needed to fulfill your ambitions is worth it in the end. In addition, having true professionals will enable you to meet all of your milestones:
- Financials are re-casted
- Buyer lists are composed
- Due diligence is handled
- Negotiations are structured
With an expert team by your side, you can make sure that your business continues to thrive (which is so critical in the months preceding your exit), and that your exit is on schedule. This prevents your departure from being prolonged or mismanaged.
Make sure your patience pays off
While you may be eager to start life after business or disheartened by the estimated amount of time it takes to exit a company, I hope this helps to reassure you that a mixture of patience and planning ahead can make all the difference to your financial future and your company’s legacy.
Whether it is taking the time to grow the value and stability of your business in the years leading up to an exit, or reaching out to a professional experienced M&A advisory firm – the time you spend here will pay dividends when the transaction is complete.
I can assure you that by investing time and resources in profitably growing your company and securing the right guidance today, you are giving yourself the foundation for an optimal exit tomorrow.
If you are interested in learning more about the steps involved in exiting a business, schedule a confidential consultation today.