Challenge
So, you’ve done a load of hard work over the years and you feel like the time is right to move to a value conversation. Planning for a successful exit, whichever route you pursue, and there are many, requires thorough preparation and strategic planning. It’s not easy to get a deal away so you need to take it seriously if you want the right result.
Badly executed, attempted and failed exits are more numerous than you might think and unfortunately, are often a reason why operational performance falls off in a financial year as leaders focus on selling not running their agency.
Test yourself below:
| Question | Why it’s important |
|---|---|
| Are you considering selling your business in the next few years? | Early planning is crucial for a successful exit, it allows time to prepare the business and maximise its value. You should be planning multiple years in advance as this allows time to maximise premium value factors and diminish the discount factors that will impact your valuation. Don’t wait until it’s too late as so many who approach us do! Be ready and fully prepared when you don’t need to sell the business, not when you do. |
| Do you know what exit options are open to you? | Understanding exit options helps in making informed decisions and choosing the best path forward. There are many routes to value, some are faster than others, some carry more risk and some allow you to enjoy more firepower in your business. You should look at a wide range and not just assume any one route is for you. MBO, EOT, value release, buy and build, merger, strategic acquisition and tactical tuck in to name a few. Which one is ideal for you? |
| When’s the right time to think about it? | Timing is critical for a successful exit. Early planning ensures that you are prepared when the right opportunity arises. So many leaders time this badly and then make the process much harder than it needs be. When you know it’s your end game, start then to be prepared and ready. Know what you will do and seek help to do it right the first time. |
| Do you have the right plan and leadership team in place? | A strong plan and leadership team are essential for executing a successful exit strategy. People buy the plan and the senior team above the customer book or the service capability. It’s imperative you have the right people in the right roles with the right incentives in place to make you investable / saleable. |
| Can you be confident you can do what’s needed to see you to a successful sale? | Confidence in your exit strategy and preparation is crucial for achieving a successful sale. It’s complex and needs seasoned advisors to help you get it right. Success is never guaranteed but can be significantly improved if it’s not your advisor’s first rodeo. |
Solution
Start planning your exit strategy well in advance. Understand your exit options, build a strong leadership team, and ensure your business is attractive to potential buyers. Seek expert guidance to navigate the complexities of the planning and exit process.
Why it’s essential
Early and thorough exit planning maximises the performance and value of the business and ensures a smooth transition. Expert guidance can help in identifying the best exit options and preparing the business for a successful sale.
Waypoint can help you
Waypoint has completed more than 70 transactions in this market. We have a tried and tested way of working to complete deals which maximise value and ensure best future outcomes for the business.
