I often speak with business owners that are considering an exit. They've built a profitable business and want a high multiple. What they don't realize is that they are intertwined into the company's DNA.
When you've run a business for quite a few years, you tend to lose track of how much you're responsible for and how easy it is for you.
The primary reasons investors purchase a business is for:
- Higher ongoing cash flow/profitability
- Complementary to their existing business
- Efficiency and profitability gains through above items
Most owners want the cash from an exit and do not understand that they will probably have to endure an earnout provision before that occurs.
Not always an easy conversation for me to have or a fun process.
However, building a company that can run effectively without you should be you're goal if you're looking to maximize the exit.
"Sometimes you've got to hug the cactus" to get the maximum results.
Rich Hall Group