When I assist a business owner with exit planning, being prepared well in advance ensures that the owner will have more options to sell for a higher multiple.
Many of the owners I work with begin somewhat prepared, but rarely do they have an advisory team working together regularly to potentially take them to the next level valuation. That’s where a good exit planner comes in. I work with owners to maximize their strengths, improve on their weaknesses, and capitalize on opportunities for growth. These things should naturally flow through to a higher bottom line and higher net proceeds on a sale.
What is readiness? It’s not when the owner feels ready unless they’ve done the necessary work to get themselves prepared and their business is turnkey. Owner centricity and customer concentration are common pitfalls. The exit planner can assess owner readiness, identify areas of need, and inform owners that they are not really ready.
Many M&A advisors say, if the owner had an exit planner on board early in the process, the positive impact would be significant.
FPA Owner Transitions 