The most important thing shareholders should know about exits is that only 25% of saleable companies end up having a successful exit. Most owners sell for less than they should have received, with many having no idea they have left millions of dollars on the table. Just imagine how many prime exit opportunities that are missed because of companies being reactive rather than proactive. Companies need to be planning and strategizing their exits in order to optimize the move.
Think of the exit as just another business process, meaning an “exit strategy” is necessary. Set realistic timelines and keep in mind that the time invested by you and your team directly affects the final price and the probability of closing a transaction. A good estimate is one to two years for an experienced team.
Even though you’re exiting, doesn’t mean your value drops. Companies should be sold, not bought, and there are many factors that affect saleability. There are lots of ways to maximize your price, and GSD can help with them. We can assist by building value in your company by defining sales processes, streamlining service level definitions and showing growth through increased sales figures. The key to all of this is recurring revenue, something we can help build. There is a direct relationships between sales figures and valuation, and GSD can assist in higher revenue figures, leading to a higher sale price when exiting.