Exit Strategy Vs. Keep It Strategy

Posted by IanDSmith under Management
From http://www.portfoliopartnership.com 4035 days ago
Made Hot by: SJC on November 11, 2013 10:34 pm

Is there a difference between running a business to ensure you can exit and cashing out one day Vs. running it to keep it forever? Yes there is, the last 24 months. Every owner needs to run a business as if they wanted to cash out one day.

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Comments

Written by AngelBiz
4027 days ago

Ian - I like your idea of keeping the checklist and making sure you start working on it 24 months prior to expected sell date. from running the business perspective I don't think there is a difference. You still need to manage the business as if you are going to own it forever, otherwise you run the risk of deteriorating your business and not be able to sell it in a timely manner or at expected price. The real difference is keeping the house in order so that you can "wrap it up and leave" on a short notice when the time comes.

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Written by IanDSmith
4027 days ago

Harry I agree you need to run the business as if you will own it forever. However there are specific items that you must attack in that last 12/24 months prior to a sale. If you were happy keeping the business for annual yield I'm not sure you would appoint investment bankers, double down on creating a buzz etc. In my experience some of the actions required of owners only happen when an exit becomes a realistic goal.

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Written by bloggerpalooza
4028 days ago

Exit strategy, a great way to bug out when you are sinking. You will never know when to use this but be sure than be sorry. To those who are sure whey can maintain their business, keep it up, optimism can mostly keep you on the road.

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Written by kingofcontent92
4028 days ago

A business is not a business without the risk of running aground. You will know when will your ship sink and when will you go to rich places. Bugging out can be a great idea if you are not sure that you cannot hit the gold.

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Written by motasimbillahsumon
4028 days ago

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Written by IanDSmith
4028 days ago

The best time is a function of your energy levels driving the business, the state of the M&A cycle, where your sector is on the economic cycle, and your desire to maximize proceeds. You can tell I worked in M&A for 12 years!

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