It's not enough to build a business worth a fortune; you have to make sure you have an exit strategy, a way to get the money back out. The range of exit strategies includes taking the company public through an initial public offering (IPO), selling the company to a strategic acquirer, or recapitalizing and selling the firm to the management team, also known as a management buyout.
To do a successful exits you need to do considerable planning. The sooner you start, the more rewarding your eventual exit is likely to be. Many steps are involved in exit planning which includes, preparing the business, profiling the business, business independence, business evaluation, filling the gap, and fine-tuning the company's strategy. We can assist you in all the stages and steps in planning the exit strategy.
Prepare Your Business for Exit
Preparing your business for exit involves three main components – putting all the facts & figures of the business in the right manners so that the potential buyer can see the value with supporting information, transition of business and to maximizing the value of your business. Now is the better time to start preparing your business for an exit because takes some time to prepare it.
Buyers look for different things in a business but at the end of the day they are looking for earnings and cash flow. Maximizing value of your business can be summed up simply as maximize both short-term and long-term profitability and cash flow. Some things investors look for are:
Filling Up the Gap in the Business
In order to prepare your business for exit you also need to clean up the business and make it transitional. Some of the things to consider are: