It’s finally time—a new sense of freedom is knocking at your door. Soon you’ll get to embark on that world tour you’ve always dreamed of, dive into the hobbies you never got to experience, write the book that’s been living in your imagination since you were 12 years old, or enjoy quality time with loved ones for the first time in forever. But before you set off on your next adventure, there are a few final tasks to complete—like taking the necessary steps to prepare for your exit strategy. Here’s a list of 10 things you can do to make sure you and your business are taken care of.
1. Define Your Goals Beyond the Sale
Sure, maximizing the sale price is crucial, but there’s more to think about. What’s important to you? It could be preserving the company culture, ensuring your team is cared for under new management, or handling confidentiality with finesse. Get clear on these objectives to guide your process and make sure they’re well communicated to future prospective owners.
2. See It Through a Buyer’s Eyes
Imagine you’re the buyer. What would make you go “wow” about your business? Understanding how potential buyers perceive value can help you tweak your business to make it even more attractive. Remember, the highest price isn’t always the important thing for your long-term goals. Sometimes it’s about the right fit more than the one that pays you the most.
3. Invest in Some Housekeeping
Neglecting the basics can be a major pitfall. Clean up your financials, separate your personal and business affairs, and tidy up any legal or tax issues. A little investment in getting your affairs in order can make a big difference.
4. Get Comfortable Being Unnecessary
If you’re the driving force behind the business, you’ll want to prepare for a smooth transition. Develop a solid succession plan, maybe bring in a capable CEO or GM who can run the show smoothly before the sale, and make this as efficient as possible. This will reassure buyers that the business won’t stumble without you.
5. Don’t Rush—Prep Like a Pro
You’ve got time, so use it wisely. Aim for a solid 6-12 months of prep work before hitting the market. This includes diving into operational, human resources, commercial, financial, and tax due diligence. The more thorough you are now, the better shape you’ll be in when it’s time to sell.
6. Balance Growth with Profit
Growing your business is great, but don’t let profitability slip through the cracks. Buyers value sustainable profits, so focus on boosting your EBIT or EBITDA and show that your growth initiatives are solid. Ideally, give yourself a couple of years to demonstrate this—but if that isn’t possible then just do what you can with the time you’ve got.
7. Timing Is Key—Be Ready to Pivot
The market can shift, and timing can impact your sale. Make sure your business is always in a sale-ready state so you can take advantage of favorable market conditions when they arise.
8. Showcase Your Growth Potential
Buyers love a good growth story. Whether it’s new products, expanding into new markets, or exploring new channels—make sure you have a clear and partly implemented growth plan. This not only boosts your valuation but also shows buyers you’re on the up and up.
9. Protect Your Post-Sale Proceeds
Selling your business will likely result in a sizable amount of money. Plan for taxes and protect your wealth with a solid strategy for retirement and succession. Ensuring you’re financially secure post-sale is one of the most important things you can do.
10. Be As Informed As Possible
Finally, selling your business is a huge deal. Get professional advice and do your research. The sale process is different from running your business, so having the right support and information is crucial. Reading this 10-step guide was a great start. Now keep it going!
