Managing the Early Stages of Exit Planning
For many owners, it’s impossible to separate their personal identity from their work as a business owner. So the idea of exiting a business can feel daunting and emotionally fraught. They may wonder how they’ll manage the process, and whether leaving is actually the best option for their future. It’s natural to ask these questions. Indeed, doing so shows that they take selling their business seriously.
An exit plan makes the process more manageable. It is difficult for business owners to write one without assistance. Rather, a good exit plan is a collaborative process that relies heavily on expert input. So how can business owners get the most out of exit planning and draft a workable exit plan? Try these suggestions:
Plan for a Collaborative Process
The best exit plans draw on expertise and insight from several different business advisors—a lawyer, accountant, a tax expert, and an investment banker or M&A advisor. Every sale involves several goals, and an expert team can ensure the goals are achieved.
Remain in Control
While the right team can lend significant expertise, thus making the exit planning process run more smoothly, the experts on the team cannot advise business owners on what they want, nor what they should do following their exit.
Don’t Rush the Process
Exit options are only theoretical if business owners haven’t yet explored their desires for the future. It’s tempting to spend time and money exploring exit strategies. But a strategy offers little of value if it doesn’t address what matters to each business owner. Before selecting an exit plan or working toward a goal, the team of experts should help assess priorities, then explore options to achieve them.
Understand That Exit Planning Doesn’t Happen Overnight
Exit planning has many variables and is quite complex. Moreover, an exit plan is a living document, meaning it can and should evolve as the realities of a business and goals for the future shift.
Choosing the right team can help exit planning feel less overwhelming. Select experts who have experience, and who can help set reasonable expectations for the marketing, sale, and exit of a business.The sale of a business, for many, is one of the largest transactions in a lifetime, select a team of experts wisely.
About Madison Street Capital
Madison Street Capital is an international investment banking firm committed to integrity, excellence, leadership and service in delivering corporate financial advisory services to publicly and privately held businesses. Over the years we have helped clients in hundreds of industry verticals reach their goal in a timely manner.
Our experience and understanding in areas of corporate finance and corporate governance is the reason we are a leading provider of financial advisory services, M&A, and valuations. With offices in North America, Asia and Africa, we have adopted a global view that gives equal emphasis to local business relationships and networks.