Exit Strategy and Planning

Posted by Ben Whittacker-Cook on Jan 18, 2022 10:37:41 AM

A regular and exclusive series addressing some of the major challenges facing SMEs today. Icehouse Insights also highlights some of the possible solutions you can weave into your business to solve common issues.

Perfectly planning and executing an exit strategy is arguably the most important process any business owner will ever undertake. It’s the culmination of (often decades’ worth of) toil, sleepless nights, long days and much stress.

However, 75% of private business owners ‘profoundly regret’ exiting their business (Snider, 2016), so something isn’t right. Icehouse Insights attempts to provide some clarity to some very important questions, build some advantages and identify the pitfalls.

An exit strategy is the plan for how an owner will eventually leave the business, it is critical they take good advice from the outset. Who will they sell to? When will they sell? What kind of exit plan will they choose? How can they add value to the business before they sell? There's plenty to consider, so let's read on…

Acknowledgement: Thanks to Andrew Martin (Marty) at Strategic
Specialists Group for advice, consultancy, and background information.



There is a further option to consider before embarking on the process of selling a business. That's asking yourself if you really want, or need, to sell?

Of the owners who do build something worth selling, ‘1 in 4 will go through a
lengthy sale process only to find the deal fall apart before the closing' and
'51% of the time they fail to close due to seller misrepresentation or an unreasonable seller or buyer demand,’ according to the Private Capital Markets Report, 2017.

Does that indicate that the sale lacked the required due diligence or that the
seller wasn't committed to the deal? Or both? Further, while a mere 5% of business owners are content with their net proceeds from selling – they may also underestimate the non-fiscal or non-material loses; a sense of purpose, a daily routine or a creative outlet...

Download the full publication here

Exit Strategy and Planning


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