Creating an exit strategy plan now instead of later is advantageous to your future endeavors: following an established exit strategy involves increasing company profit, revenue, and market value to leave your business in optimal condition for all stakeholders involved.
What Is a Business Exit Strategy?
A business exit strategy is the transfer of ownership of your business by selling your business to buyers, merging with another company, passing your business on to a successor, or pursuing an employee or management buyout.
Developing a business exit strategy gives you control over:
- Any remaining influence you have upon exiting.
- The amount of time it will take to leave the company.
- The successor.
- The most optimal compensation you can receive when you leave your business.
- The option to completely relinquish ownership.
Entrepreneurs should complete their exit strategy using the most necessary professional assistance to ensure all plan requirements are efficiently addressed, organized, prepared, and accounted for.
Exit Planning and Succession Process
- Setting an exit goal: clients will decide how they want to exit their business. For example, many entrepreneurs set a final revenue goal to initiate an exit date.
- Identifying your prospective buyers: assessing your company and the prospective buyers in your industry.
- Valuation: use market analysis to identify your current market value to strategize valuation improvements to appeal to your ideal prospective buyers. Coaches create a strategy for your business to reach the optimal sales value needed to fund your exit.
- Improve profit: using financial assessments such as a Comparative Benchmark Report and Projections Report, an exit strategy planning coach will create an action plan for financial goals to remain competitive in the marketplace and create a 5-10 year projection of your growth.
- Generating an inventory of your assets: if your business needs an increase in funds, you will identify what assets are available to sell.
- Succession leadership development if you choose a family successor to inherit your business. An exit strategy coach will create and execute strategic and performance plans in preparation for your successor.
- Estate and legacy planning: secure your cash, securities, and assets and confirm their distribution to beneficiaries according to your wishes and stipulations.
Benefits of Developing a Business Exit Strategy
- Your exit plan complements your business plan in providing clarity on your company’s future and works with your strategic plan to inform you of operations management improvement.
- With your business exit strategy in place, you will identify the most optimal exit strategy and know when to sell your business on your terms.
- If you have chosen a successor, they will learn the skills needed to become the new leader of your business.
Business owners and entrepreneurs who wish to create a comprehensive and professionally developed business exit strategy can book a consultation with me today.
