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The Stages of Value Maturity - Stage IV: Harvest

The Stages of Value Maturity - Stage IV: Harvest

October 17, 2022

After building your business value, it is time to harvest the fruits of your labor.

There are numerous paths your business exit can take. You should invest in an investment banker and business advisor to get the most value out of your exit. After reviewing your options, you might discover that you decide not to sell your business and instead transition the company to a son or daughter, sell the real estate and keep the company, or continue to build value.

At the beginning of the exit planning process, it is important to determine whether the owner would like to retain some control in the business or if they are comfortable relinquishing all control in a sale.

What Are The Exit Options?

A business owner can exit their company in either an internal or external fashion.

The most successful exits begin with the goals in mind and work backward to determine which exit option meets those goals.

What Makes for a Swift Exit?

What steps can an owner take to ensure a swift and manageable exit process? While every exit will have its own unique challenges, working with the correct team of advisors, strong communication, and a proper due diligence process positively impact the owner.

6 Steps to Selling a Business

  1. Prepare the business for sale/gather due diligence documentation
  2. Find a buyer
  3. Negotiate terms
  4. Final due diligence
  5. Transactional documents
  6. Transition to the new owner

Before Beginning the Exit Planning Process, Ask Yourself These 3 Questions:

  1. Are you healthy, and do you have a plan for life after the deal?
  2. Is your company growing, and is the EBITDA improving?
  3. Are the capital markets strong at the time of potential exit so we can maximize the value by utilizing the proper amount of equity and debt?

In Sum

There are a variety of exit options an owner can utilize. However, without properly considering their personal and business goals, business owners may fail to realize which option best suits their needs. With the help of their dedicated team of advisors, business owners can harvest the full value of their businesses, maximize net proceeds, and have a swift exit process.

Securities and investment advisory services offered through qualified registered representatives of MML Investors Services, LLC. Member SIPC. Integrity Benefit Partners is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. 200 Clarendon Street, 19th & 25th Floors. Boston, MA 02116. 617-585-4500. CRN202507-2694019.