Valuation fails can derail an exit long before negotiations even begin…
Here are just a few of the common fails in the months (and even years) building up to your exit:
> OUTDATED COMPARISONS. The M&A environment is constantly evolving. Check your benchmarking is up-to-date.
> OPTIMISM BIAS. Be realistic about your growth potential – or find strategic partners to change your growth trajectory, well in advance of your exit.
> WRONG FRAMEWORK. Applying a valuation methodology that’s inappropriate for your particular business can seriously overvalue or undervalue your company.
>FLIMSY EXIT STRATEGY. Your business might be worth a premium to one type of buyer and not another. Make sure you have this figured out upfront.
If you’re looking to exit in the next couple of years, don’t let unrealistic expectations – or lack of advance preparations – undermine your company’s exit value.
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