The Long Goodbye – Myths, realities and insights into the business exit process
In our work with successful entrepreneurs we know that for many the exit it is the one opportunity to realise significant personal wealth from a business, but it is also a moment that few are fully equipped for.
For many it is truly a ‘once in a lifetime’ experience that few completely understand at the outset. This report is in essence a digest of not only our experience but also that of other business owners who have either been through the process or are preparing for it. There is nothing like taking advice from the veterans and the current protagonists.
It is clear that a successful exit grows from months if not years of careful preparation, and there is no doubt in our minds that the more information you can get through this process the better. Our hope is that by reading this report you will come away with new perspectives on your business and ultimately a more successful exit, if that is your goal.
Below are some of the key findings of the report:
- The time it takes. The majority of owner-managers will find it takes up to two years of planning before a sale completes – although 46 per cent of pre-exit entrepreneurs believe it will take less than a year.
- Inexperience. Those surveyed admit to being naïve as to what is involved in the sales process. This is critical as, for most entrepreneurs, this is something you do only once.
- Choosing the right advisers. Good advisers can not only help open new possible exit channels, but are crucial in negotiating the best possible price. They have the ability to create competitive tension and may also have a list of likely buyers.
- Maintaining focus on the bigger picture. There are risks in focusing everything on the sales process and losing sight of running the business itself.
- Are you selling yourself or a business? The danger of becoming the ‘face’ of the business. Can it be sold without you?
- Best laid plans. Even the best laid plans can go awry, with one entrepreneur talking about his experience of a road accident and stock market wobble which resulted in the sales process taking more than three years to complete.
- Life after exit. What happens after the champagne corks have popped?. While 25 per cent decide to retire for a life in the sun, 40 per cent still need the thrill of running a business and start again – when they can. The report explores how the vision of walking away from a business immediately after a sale rarely translates into reality with 51 per cent still having direct involvement in their businesses post exit.
