7 TIPS ON HOW TO MAXIMIZE YOUR EXIT

 

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How do you maximize your exit?

2 successful entrepreneurs who have gone through the process of selling their businesses shared their powerful insights on how they maximized their exit.

We can all learn from their experience.

They were interviewed by Growing Business in conjunction with tax advisers, Haysmacintyre.

Their accounts shed light on the motivations that drive successful entrepreneurs to cash out and sell their businesses.

Zac Feather created The Pathology Group [ a medical recruitment agency] and it was sold to Independent Clinical Services.

The terms of the deal remained confidential but Zac still provides the following insights:

1.    TIMING

There are various elements to timing – it may be the right time personally, it may be the right time financially or it may be the right time from a market viewpoint. Zac felt it was the right time as the business had experienced 3 years of rapid growth.

2.    ROOM TO GROW

Room to grow….for the new buyer. If they buy for $5 million, they must see the opportunity to sell for $10 million.

The old adage of ‘leaving something in it for the buyer’ is true.

3.    STRONG MANAGEMENT

It is not only about the founder. There must be a strong team in place.  Zac confirmed there had been a significant investment in the senior management team to dive the business forward after the business had been sold.

4.    MENTALLY STRONG

You must be clear about why you want to sell, are you ready to sell and let go and what will you do next?

They say divorce, death and moving house are the 3 most stressful things in life.

Selling your business is up there with them.

You need to be mentally strong.

 

A second successful entrepreneur is Duane Jackson.

He created Kashflow [accounting software] and it was sold to IRIS Software Group.

Like The Pathology Group, the terms of the deal weren’t disclosed but Duane provides the following insights:

5.    STAND OUT

Duane describes himself as ‘mouthy’ when it came to marketing his business.

The accounting software industry was ‘conservative’ so being the opposite helped raised the profile of the business and made it stand out from the crowd.

6.    USE A THIRD PARTY

The disadvantage of being ‘mouthy’ and high profile was the reluctance of other businesses in the industry dealing with you. They feared rejection and humiliation via social media. The answer was to use a ‘third party’.

It also creates a distance between the potential purchaser and the founder.

7.    KEEP FOCUSED ON YOUR OBJECTIVE

IRIS made 3 offers before it was finally accepted by Duane

It was a number ‘that I felt would be silly to turn down’.

 

Also, remember the biggest mistake when selling your business is lack of preparation.

To maximize your exit, you need to start preparing NOW….even if you think your actual exit from your business may be years away.

Go to http://www.maximizeyourexit.com/sell-smart-net-what-youre-worth-t to discover how you can maximize your exit and achieve financial freedom and receive a 75% discount.

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