Many companies (in fact most companies) don’t have an exit strategy. This is a mistake. It’s important to develop a business exit strategy and to regularly review your progress, and be up-to-date on the trends happening in your market, and the current M&A market in tech overall.
Companies talk annually with their legal, insurance, and financial advisors. M&A Advisors should be added to this list. By establishing a relationship with an M&A advisory firm well in advance of any transaction, you will have the opportunity to build value into your company and avoid the common mistakes companies often make as they grow towards a sale. As you are determining your next move, it can be helpful to use our Advisors as a sounding board. We can provide you with insight on how your decisions can affect an eventual sale.
It’s important for shareholders to understand the exit process and how buyers will view and value their company. Preparing your company for an eventual sale well in advance of any transaction will result in a much smoother process and less stress for the shareholders and executive team, and is likely to increase your valuation.
We regularly advise many of the firms that contact us to hold off on exploring their options after we have had an initial discovery call. Instead, we coach them on what the shareholders and executive team need to address in order to get their company better positioned for a more favorable outcome.
We then arrange to follow up at a predetermined time to see how the firm has progressed. At this time, we might suggest additional areas to focus on and set a new timeline. Let’s talk about preparing your business exit strategy. Please use our Online Calendar or call us at 416-483-9400.