Exit Preparation

Exit Preparation

Selling a business can be overwhelming, especially if you’re trying to keep your company running at the same time. What should you do to prepare? How can you maximize value to get the best price? What steps should you take to make the transition smooth for your employees and customers?

Most owners of privately-held companies understand the importance of planning for the future. ACT Capital Advisors can help you consider the range of available exit strategies and develop the optimum short or long-range plan.

View Deal Opportunities
Organize the Financials
To command a premium price, you’ll need to demonstrate profitability, a solid revenue stream and growth potential. Any potential buyer is going to want to see detailed financials and compare them to benchmark data from within your industry for determining the valuation.
Strengthen the Management Team
Managers are part of your company’s value. These human assets are critical to ensuring a smooth transition of your company to new ownership. Recruit new people if necessary or incentivize your existing team to stay on after the sale of your business.
Add Growth Potential
Perspective buyers aren’t solely interested in the current state of your business; they want to know it has future scalability. With the assets and human resources in your business, will they be able to enter new markets and increase margins for bigger profits?
Create Barriers to Entry
The more difficult it is to start a new company in your industry, the higher the value of your company. Market entry barriers may include patents, licenses, established distribution networks, proprietary technology and high capital investment requirements.
Reduce Customer Concentration
Is your company reliant on just a handful of customers? You can add value to your company by expanding your customer base. Find new lines of business or enter new markets. Buyers want to mitigate their risk with customer volume and diversity.
Create Recurring Revenue
A business model that includes predictable, recurring income is highly desirable. If you sell consumables or have existing contracts with customers, subscriptions or auto-occurring sales, you can demonstrate guaranteed revenue, adding to your company’s value.

Optimize Your Exit Strategy

If you were selling your home, you’d make sure it looked its best before putting it on the market. You’d give it a fresh coat of paint, make any necessary repairs and perhaps do some landscaping for curb appeal.

Selling a business is no different. Before placing it on the market, you’ll want to maximize operational efficiency, profitability and consistency. With strategic planning you’ll attract more buyers and command a higher sale price. ACT Capital Advisors can help you prepare for your exit – whether in a few months or years – to fully reap the rewards of all your hard work.

Learn More About Our Business Growth & Exit Strategy Process
What Our Clients Say
Case Study: System Three Resins, Inc.
Case Study: Anderes Oil
Case Study: Rainier Pallet and Crating
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