What If, You Could Exit Your Business Gracefully?
In today’s issue
Creating a Win/Win Exit
445 Words, just a 3 minute read
Of course you could lock the door, pay off everyone you owe and sail off into the sunset.
Not many of us dream of the final days. Some of us would like to hand the business to others who could take it well into the future. Others ponder how to get the last morsel of value from what they worked so hard to build.
Many of us avoid thinking about it.
But what if IT was a WIN/WIN for you and your employees? What if, IT provided resources that you haven’t been able to amass?
Working the next ten years and doing what you have been doing seems likely for most. And, ten years from now you just might find someone to take over your job. Doesn’t sound like a premium payoff.
Here is what is possible.
Creating an investable business.
One, which can be measured in standards.
One, that can be scaled with added resources for training, purchasing, systems help and more.
One that could be recognized by more high-end clients and partners (architects, designers and builders).
One that allowed you an immediate payout and allowed you to continue to build value.
One that developed the next generation of leaders to carry-on.
There is no need to be in a hurry. This option is a long term working your way out of the business with grace and legacy.
What has been missing?
Companies that perform consistently and within established standards.
Investors who see the value of these businesses and a network of like operating companies
A vehicle for getting to #1 and #2.
The vehicle exists it is the VITAL MGMT process combined with its group effort to execute its re-investment strategy.
The bottom line: owners invest 25% of a high value multiple on their cash flows. They take 60% of the value now with the prospect of the leave-in becoming as much or more than the first takeout. The investor puts money into training, purchasing, HR resources, marketing and further systems development.
Meanwhile, the investor seeks other well-conditioned companies to join the group. Next gen leaders, greater specialization, better processes create an environment much better than might exist today.
Ok there is the bit about becoming more of an employee than owner. Some will find a two-year or three-year out (with more by the way than they would have made in ten years).
You can take the steps today to have this option. It does not have to forego your existing direction of going it alone.
Why not make that sunset a little more enjoyable. IT is waiting.