How to Successfully Exit and Sell Your Business: Key Strategies for Maximizing Value

As a business owner, you bear a lot of responsibility—management duties, payroll, customer retention, quality control, cash flow, and, if you’re publicly traded, shareholder interests. Adding to this list is the need for a clear exit plan. Do you have a strategy around exiting your business? A strategic exit plan helps prioritize your goals, capture opportunities, and maximize profits when it's time to sell. Constructing this plan isn’t something that can be done in a few hours, nor should you wait for "perfect market timing." A well-thought-out strategy can greatly influence your future. Crafting the right blueprint for your exit is as critical as the one you made to start your business. This article covers essential considerations to help you exit as smoothly and profitably as possible.

Exiting a business is personal, and several factors require careful thought before diving into the financials and operational details. Consider: What does an exit mean to you? Who do you want to sell to? Under what circumstances would you exit? Who will advise you? We’ll explore each of these and share insights from Kelliher Acquisitions on factors that can lead to successful and lucrative exits. We suggest revisiting these questions regularly.

What Does an Exit Mean to You?

Every exit is unique. Now is the time to get precise with your goals. Are you looking to retire or enter a new venture post-sale? How much time and resources will you need to accomplish these goals? Are you hoping to stay involved post-sale, or do you want a clean break? At Kelliher Acquisitions, our team understands the importance of these questions, and we work with you to ensure all aspects align with your goals to maximize profit at exit.

Who Do You Want to Sell To?

Do you have a buyer profile in mind? Family members, local buyers, private equity firms, or industry competitors may be interested. Buyers vary greatly, and having the right fit can ease the process. We assist in vetting buyers, helping prevent headaches down the line.

Under What Circumstances Will You Exit?

Are you waiting for a certain age or specific market conditions? A strategic plan positions you for a profitable and smooth exit, and without it, you may be missing opportunities for higher profitability. Many business owners go to market at retirement age without a clear plan, resulting in lower sale prices. The positive cash flow of a business is sold at a multiple—each additional dollar of profit can mean substantially more at exit.

Who Will Advise You?

Going to market is complex, and working with a Business Broker can save time, mistakes, and money. Seeking a trusted Broker can make a significant difference. You’re an expert in your business; it’s essential to find an advisor who is an expert in the buying and selling process.

Our Approach at Kelliher Acquisitions

At Kelliher Acquisitions, our process begins with a Valuation on your business. We analyze the company’s last three years of financials and run multiple valuation models to determine an optimal list price. This thorough process may highlight areas needing improvement before going to market, allowing us to help you make necessary adjustments to maximize value. Our goal is not to rush you to market but to position you for a successful, profitable exit.

If you’re considering selling or would like a Valuation, please reach out to anyone on our team at Kelliher Acquisitions.