For this week’s blog we’ve compiled answers to a question we asked some of the 17-percenters who will be appearing on our podcast over the next 5 weeks. Today’s question of choice is: Did you have a transition team in place during your exit?
First, when you start preparing your business for transition, at least three to five years before you actually want to transition, there are going to be things in your business that need to be addressed. Hard things. If you have a relentless execution team, you’ll be able to make the changes you need to build massive additional value to your business. And, if you want to sell your business to an outside individual or firm, buyers tend to pay more for teams that get the job done!
Absolutely I did. Even for smaller companies, they'll call it a board of directors or a board of advisors, but they still have people who are going to give you individualized impact as to what you're doing, where you're going, and call you out on your strategic initiatives. You've got to have a good board of directors who are looking at things and are giving you the feedback that you need. When buyers see that, it comes off as if your business is a well-oiled machine, so to speak, which creates a feeling of safety and builds additional value.
I had no transition team, and that was a clear mistake. Have legal counsel look over all of your agreements in advance. They’ve been doing it a long time and can give you really good advice before you pull the trigger so that you avoid some really, really nasty situations.
We did not have a true “exit team,” but having gone through this before, I had some insight. Our buyer, luckily, had a high degree of trust in us and didn’t require any auditing or extensive records to be pulled, which certainly helped.
Check back each week for more expert answers to some of the most thought-provoking and important questions you should be asking yourself in advance of your exit - from people who have been through it!
ABOUT TOM BRONSON
Tom is the founder and President of Mastery Partners, a company that helps business owners maximize business value, design exit strategy, and transition their business on their terms. Mastery utilizes proven techniques and strategies that dramatically improve business value that has been developed during Tom’s career 100 business transactions as either a business buyer or seller. As a business owner himself, he has been in your situation a hundred times, and he knows what it takes to craft the right strategy. Bronson is passionate about helping business owners and has the experience to do it. Tom has authored, “Maximize Business Value, Begin With the Exit in Mind,” his book on the importance of exit strategy as good business strategy. Tom’s passion is to equip and educate business owners so they can be in the 17% of business owners who successfully exit their businesses. Check out our resources to help you maximize business value - our website, our blogs, our YouTube channel , our podcast and our MasterYclass.
Mastery Partners, where our mission is to equip business owners to Maximize Business Value so they can transition their business on their terms. Our mission was born from the lessons we’ve learned from over 100 business transactions, which fuels our desire to share our experiences and wisdom so you can succeed.