So, you have finally reached the point where you are emotionally and financially ready to exit your business and/or find an investor to help you grow it. Once you have arrived there, you move forward but will most likely do so with a limited knowledge base on how to proceed and often follow the non-professional “process” outlined below, according to Axial:
Unfortunately, the sad reality is that if you follow this outline you will most likely leave chips on the table and sell your business at a significant discount.
Because it lacks the preparation necessary in several key areas, since many business owners fail to realize the sale of a company, either wholly or partially, is a PROCESS not an EVENT.
First, preparation needs to start long before the NEED for a transition event occurs. Far too many business owners wait until one of the Big D’s raise their ugly head on the horizon before deciding an exit is needed (Death, Disability, Divorce, Disagreement among partners, Disinterest/Burnout, Decision to Grow/Need for Capital).
It’s likely that if you wait until you are facing one (or more) of these, you will simply take the first offer you get and spend very little time in phases 2-4 above. In doing so, you will move far too quickly to identify and move forward with the right buyer, instead taking an offer and deal structure that most likely benefits them, not you.
It is far better to use a planned, coordinated professional process when exiting your business, one that includes a number of steps that are not outlined above. Here is what Axial suggests:
As you can see, the professional succession planning process starts long before you need capital or an exit, and it begins by speaking with professional advisors who are experts in fields you will need input from. This will help create your skilled exit planning team, which could include:
Creating this team in advance of entering the market (No. 6 = vet potential partners above) will allow you to do several things:
As you can see from this list, these are all vital to ensure an optimal deal is closed in your favor. If you skip these steps, or even try to shorten them dramatically because you are in a fire sale, you will only hurt your financial future and legacy.
If you are interested in learning more, you need to attend a Generational Equity executive exit planning conference. These are complimentary, no-obligation meetings that are designed to help you understand the professional exit planning process. By attending you will gain knowledge that will help you preserve and protect your equity. If you would like more information, please give me a call at 972-232-1125 or firstname.lastname@example.org.
Some additional links you might find helpful:
P.S. – If you attend our conference, you will see that we use a 17-step process to close deals for our clients. We are even more thorough than the industry. That is probably why we were recognized as Investment Banking Firm of the Year in 2016.
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2017 Generational Equity, LLC. All Rights Reserved.
The information we learn from customers helps us personalize and continually improve your experience at gencm.com. Here are the types of information we gather.
Information You Give Us: We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice. Our computer system protects personal information using advanced firewall technology.
Information from Other Sources: For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Capital Markets LLC may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Capital Markets, L.L.C. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Capital Markets LLC at is office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
INFORMATION ON THIS WEB SITE IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Capital Markets may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Capital Markets does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Capital Markets will be deemed NOT to be confidential. By sending Generational Capital Markets any information or material, you grant Generational Capital Markets an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Capital Markets is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Information Generational Capital Markets publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Capital Markets intends to announce such products, programs or services in your country. Consult a Generational Capital Markets representative for information regarding the products, programs and services which may be available to you.
Generational Capital Markets makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Capital Markets web site, please understand that it is independent from Generational Capital Markets, and that Generational Capital Markets has no control over the content on that web site. In addition, a link to a non-Generational Capital Markets web site does not mean that Generational Capital Markets endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Capital Markets BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Capital Markets.
Honored to win Investment Banking Firm of the Year 3 years running.
Over 50 awards and counting.
Sign up to receive regular email updates, industry-leading insights and details on complimentary M&A executive conferences in your area from our award-winning team
Success, you have been added to our list.