ne of the biggest mistakes entrepreneurs make when starting a business is not having an exit strategy. Whether your goal is to sell or pass the business off to family member, the best way to make your exit gracefully is to begin with the end in mind.
This special report includes a guide on selling your business and succession planning, selling your business without looking desperate and other resources to help you develop a successful exit strategy for your business.
Plan Your Exit Strategy
A guide to building an exit strategy into your business from the start.
When Vanessa Troyer and Chris Farentinos launched MailBoxes4Less.com in 2000, they didn't give much thought to how they'd exit the online mailbox distribution company.
All that changed in 2006. Recognizing the huge growth potential in manufacturing high-end mailboxes for builders and retailers, the Los Angeles couple decided to channel all their efforts into a second business, Architectural Mailboxes. This meant selling the highly profitable MailBoxes4Less.com to free up the necessary funds.
What's Your Exit Strategy?
The right strategy will likely take care of itself at the appropriate time.
In the 1990s, the aspiration of every VC-backed company was to go public. Especially in the second half of the decade, the IPO was a magical accomplishment. Once a company went public, it was special and valuable, and the entrepreneur was a rock star.
During this period, every entrepreneur I met talked about his goal of taking his company public as his exit strategy. Every company pitch I saw had a slide titled "Exit Strategy" and had "Go Public" as its headline. The fallback strategy was "Be Acquired."
Sell Your Company With Savvy
Are you coming off as too desperate to sell your company?
Charlie Burckmyer and Scott Noll want to buy a small business.
Ideally, the Boston MBA grads would like to buy a small service business with $10 to $30 million in revenue. "We've cast a little bit of a wide net," says Burckmyer, 33.
They thought they'd reeled in a promising catch recently when an investment banker approached them with a company for sale in the online pharmaceutical space that had modest top-line revenue growth but robust profit growth. The company was "quite profitable," Burckmyer says.
Is Your Business Fit to be Sold?
Consider these 4 characteristics before putting your business on the market.
It's been a difficult year for most entrepreneurs hoping to sell their business. According to BizBuySell.com's data tracking the health of the small business market, the first quarter showed a 36 percent decrease in the amount of business-for-sale transactions as compared to the same time in 2008. Unfortunately the newly-released second quarter data indicates the situation has gotten worse.