With the recent gyrations of the market, Tariffs Tariffs Tariffs, uncertainties around what recent elections may bring, we wanted to leave a positive message of hope – you do control your own destiny. But you have to be prepared. Your business isn’t just how you make a living, it’s the embodiment of years of planning, grinding and executing your plan. But markets and thus, circumstances change, so we have 7 reminders of why its important to remember that you control your own destiny – but choose wisely.
- Remember to relentlessly look for ways to maximizing value– The difference between a thoughtfully timed and professionally executed exit and a hasty one can be millions of dollars. Buyers at best are curious and at worst, ruthlessly critical, and they will capitalize upon any weakness or inefficiency to drive down the price—or walk away entirely. How can you mitigate this – critically evaluate your business (or better yet, bring in someone without any skin the game to give you their honest opinion) and look for ways to diversify your client base, bring in new suppliers and streamline your operations. Buyers will recognize this – and if you do it day to day, your exit will be smoother and naturally just be more professional.
- Offer a Smooth Transition– The transition of ownership is a operational, financial and legal quagmire. Without a detailed, well-thought-out plan, the new owners can get concerned as they start to see small cracks in the business. How to mitigate this – keep focused on operations all the way through the sale, communicate often, decide when you are going to bring in your team and offer your services post closing. These are all tasks that you control, really cost you little (as you should be doing them anyway) and add value to a sale.
- Protecting Your Legacy– Remember – you are not your business, but it is your legacy (whether your name is on the wall or not). A poor sale process can lead to instability, strained relationships with employees, customers, and suppliers, and ultimately, the downfall of your business’s reputation. You can manage this by keeping the process quiet (until there is something to announce), working with a professional advisor (as opposed to just a broker who only makes introductions) and working collaboratively with a buyer through the final sale. How you manage the sale will dictate your legacy with all your stakeholders.
- Strengthen Your Negotiating Power– Failing to prepare thoroughly puts you at a significant disadvantage during negotiations. Buyers can quickly pick up on any signs of uncertainty or lack of organization—and they won’t hesitate to leverage it to their benefit. This could mean a lower sale price or terms that don’t serve your best interests. Without proper preparation, you risk walking away with a deal that undervalues your business. Preparation isn’t just helpful—it’s essential to protect your position and ensure a successful outcome.
- Exit on Your Terms– One of the most daunting risks is losing control of your own exit. Without a well-thought-out plan, you could find yourself making rushed decisions under pressure—settling for a deal that falls short of your expectations. Your goals, your vision, and the legacy of your business could all be at stake. Don’t let a lack of preparation decide your future.
As Benjamin Franklin once said – “Those who fail to prepare, fail”. The good news is that you control that. If you want to discuss how we can help you prepare – please contact us.