Let’s get straight to point.
If you’re thinking about an exit from your business in the next few years, the odds are stacked against you achieving maximum value.
I’ve seen low valuations derail exits at the last minute, because the owners didn’t take the necessary action beforehand:
🚫 Leaving It Too Late To Plan Your Exit
The clock is ticking… yet so many business owners put off planning their exit until it’s too late. By failing to prepare well in advance, you risk stagnating growth, not being ready for due diligence, and ignoring what will really get your valuation up. Opportunities will slip through your fingers.
🚫 Not Having A “Grow And Exit” Mindset
From the outset, you need focus on building a business primed for exit – not just a lifestyle company. This mindset impacts every decision – from company structure to operations.
🚫 Getting Fixated On Revenue Over Profit
Vanity metrics like topline revenue can be misleading… cash flow and profit are king when it comes to valuations. Buyers want predictable, sustainable profitability. High revenue without margins are mostly meaningless at the SME level.
🚫 Lacking A Scalable Operating System
The lack of infrastructure and defined processes will put off any savvy acquirer from paying a premium. Now is the time to document, systematise and where possible, automate core workflows. Demonstrate how the business can thrive and grow without being owner-reliant.
🚫 Having The Wrong Management Team
A weak leadership team is a huge red flag for potential buyers. They need confidence that the right people can seamlessly continue driving the business forward post-sale. Be brutally honest about the gaps in your team.
🚫 Going It Alone Without The Right Guidance
Even outstanding business owners can sabotage their own exit through a lack of experience. The financial risk is simply too great to “wing it”. Get the right advisory team in place, who can guide you towards the maximum valuation.
#nextlevelgrowth #exitlaunchpad #M&A #exit