Exits and Entrances

Working with an entrepreneur whose joint venture business plan leads to a business sale in 5 years’ time, we cover a number of fundamentals of successful exits.

Tripwires & motivations

Applauding the vision to plan an exit at the point of entrance, the 5 year target sets up all sorts of tripwires that could mean the owners miss out on potentially critical value points – other times and circumstances when an exit may be more beneficial.

Our research leads us to encourage owners to think in terms of Gateways to Exit, not arbitrary targets; anything that makes ‘right now’ the best time to maximise the value of the business, like:

  • Optimum competitive advantage
  • An external economic or political shock
  • Changes to personal circumstances

Even the type of exit methodology that may be an option (harvest, stewardship or liquidation) is worth upfront consideration in terms of how each might sit with personal motivations.

Between the will to sell and the sale sits a gap in currently available research. Filling this research gap, knowing what happens between decision and final outcome, will help us understand better how to advise people even at this very early stage in exit planning.

Whether your exit is an opportunity that comes your way, a doorway to life after your business that you go looking for, or an emergency exit when external shocks threaten to overwhelm you, Exit Motivations is developing the science to help you plot your path.

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