Assumption: Exit Strategies Are Difficult
Most CEOS assume exit strategies are difficult. That assumption discourages almost anyone who is considering an exit.
As the CEO of your growing enterprise, it’s easy to be so consumed with the day-to-day operations of the business, that you never find time to think about your exit strategy (knowing it is going to be difficult). So naturally, it simply gets shuffled to the bottom of your TODO list and never rises to the critical path until it’s too late.
You can minimize how difficult your exit is by being proactive, starting early and committing to the bigger plan to achieve your ultimate goal.
As a savvy entrepreneur, you know your business is your largest asset that you need to monetize if you are going to secure your reinvention (not retirement).
Exit planning requires a conversation and then an integration of solutions in all the following areas:
- Peak performance and succession planning
- Contingency and continuity planning for management and leadership transition
- Business valuation strategies to make the business buyer attractive and buyer ready
- Transition planning to your reinvention (not retirement)
- Tax planning for both the business and the CEO
- Estate planning goals and options from wealth advisors and insurance advisors
- Deal structure options both legally and financially
Your exit strategy will be specific to you, your business, your timeline and your goals. There is no ‘cookie-cutter’ approach. It doesn’t happen overnight. The difficulty in exit strategies comes from the multitude of possibilities and recombinations you have to explore and choose from.
You Can’t Go To School to Learn This Stuff
Schools just don’t teach this stuff, especially for private businesses. They focus on starting and running a strong profitable business, not how you’ll get out or how you’ll get your money out.
Most business owners only go through the exit experience once in a lifetime.
There is only limited primary reference material available to teach CEOs how to plan and manage the business exit. The anecdotal lessons from CEOs’ personal exits reinforce the difficulties of exiting on your terms and on your timeline.
Comprehensive exit strategy support is in short supply. Effectively executing your exit strategy requires collaborative teamwork from your expert advisors. You need to own the exit process as your top priority. An exit strategist can become your most trusted advisor to achieve that end.
An entrepreneur who tries to continue running the company and prepare the company for their profitable exit will do neither well. When you build an expert team, you can plan your exit to achieve your ultimate goal.
Kerri Salls
Exit Strategist
P.S. CEOs who build a superior team of experts walk away with better results and the wealth they need for reinvention (not retirement).
