0447 347 313
What is Your Business End Game
An exit strategy is a plan for wrapping up your involvement in a business. For most people, that means readying the business for a change of owner. Executing a well-thought-out sale ready strategy will increase your sale price.
Outright Sale (walk in / walk out)
Generational change (family succession)
Placing the business under management
Vendor Finance (earn your way out)
What Levers do I pull to Increase my Company Value?
A valuable business is also a sought-after asset, making it more likely that you get an offer to buy your business in a shorter timeframe. This gives you a greater negotiating position when you do eventually decide to sell.
The first step in getting your business “sale ready” is to use the various tools that can help you understand the current market value of your business and its strengths and weaknesses through the eyes of a buyer. This kind of analysis will help you to identify the perfect buyer profile – that is, the buyer most likely to offer the highest sale price and attractive terms and conditions of sale. Always be objective and conservative when deciding if your business is ready for sale, as many strengths of a business can be enhanced, and weaknesses mitigated, by working through our key drivers and risk mitigation analysis and creating an action plan for implementation. Collaborating with a trusted business adviser will also help. ROIC Business Group will be able to drill down on the eight drivers of company value, highlight the issues and provide you with a detailed report on the state of your business compared to the industry average.
The 8 Key Drivers of Company Value
Financial Performance
Your history of producing revenue and profit & record-keeping.
Growth Potential
Your likelihood to grow your business in the future and at what rate.
Switzerland Structure
How dependent are you on any one employee, client, or supplier.
Valuation See-Saw
Whether your business is a cash soak, or a cash spigot will affect cash flow.
Recurring Revenue
The proportion and quality of automatic, annuity-based revenue.
Monopoly Control
How well differentiated is your business is from the competitors.
Client Satisfaction
The likelihood that your clients will remain with you and also refer you.
Hub & Spoke
How would your business perform if you were unexpectedly absent.
If your business is not ready for sale when opportunities arise, you will miss out on significant potential benefits and a lower than ideal purchase
price.
At ROIC Business Group we always advise our clients to begin preparing for the sale of their businesses well in advance of when they want or need to put them on the market. The additional time will allow them to evaluate and fix any weaknesses their companies have, so they will be as attractive to prospective buyers as possible and will generate good offers. How long this preparation process will take varies from company to company.
Whether you are looking to exit tomorrow or years down the road, use this exit checklist to get started.
Interested in finding out more?
Why not book a 30-minute phone call to find out if the value builder system can help with achieving the Freedom you have been looking for..
Tools and Insightful content for business owners who would like to focus more on how to protect, grow and build value in their business.
ROIC is a proud member of
