Takeaways:


  • Day-to-day operations take precedence for the owner and exit / succession planning is often an afterthought.
  • An effective plan begins long before an actual exit.
  • Important elements of a plan to maximize value:
    • Be able to demonstrate long-term relationships with customers/clients.
    • Have a solid management team in place (remove owner dependency).
    • Review your strategy and operational plans (niche > too diversified with no strategy).
    • Clean up your financial statements.
    • Track key performance metrics.
    • Establish a message around QOE and performance and anticipate buyer questions.
    • Identify the ideal buyer(s), estimate their valuation and what would drive it higher.
    • Be honest about the strengths and weaknesses of your business.