3 Tips to Prepare Your Company for an Exit
How to Prepare for an Exit: Advice from CFOs Who’ve Been There
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When it comes to exiting, preparation isn’t just a nice-to-have—it’s the make-or-break factor.
Over the years, we’ve worked alongside companies and startups navigating the complex journey to a successful exit. Whether it’s your first time or you’re a seasoned founder, these 3 tried-and-tested strategies can help you get the most out of your exit.
1️⃣ Start Early – Plan Like a Pro
Exits don’t happen overnight. They’re the result of meticulous planning and preparation. Ideally, you should start crafting your exit strategy at least two years in advance.
Why two years? Because it gives you enough time to:
Identify and fix any gaps in your processes.
Clean up your financial records and ensure they’re audit-ready.
Buyers and investors want to see a well-oiled machine. Starting early not only maximizes your valuation but also puts you in control of the narrative during negotiations.
2️⃣ Know Your Worth: Valuation
Understanding your company’s valuation is crucial when preparing for an exit. It’s not just about having a number; it’s about knowing where that number comes from and what it means.
Here’s what you can do:
Research comparable businesses in your industry. Look at their exit terms and financials.
Speak with investment bankers or financial advisors who specialize in your space.
Reach out to founders who’ve successfully exited—they’ve been in your shoes and can offer invaluable insights.
This process helps you set realistic expectations, align your board and shareholders, and build a strategy that works for everyone. Confidence in your valuation is also a powerful asset during negotiations.
3️⃣ Communicate Like a Leader
Exiting isn’t just a financial transaction—it’s an emotional and organizational shift. Transparency with your stakeholders can make or break this process.
Here’s how to keep everyone on the same page:
Employees: Let them know what’s happening (as much as you can) and what it means for their future. Uncertainty breeds anxiety, so clear communication is key.
Investors: Keep them regularly updated on progress and timelines. Their trust and support will be critical during the process.
Partners and other stakeholders: Make sure they’re looped in on changes that might affect them. Trust builds smoother transitions.
Open communication doesn’t just build trust—it creates a foundation for collaboration, making the entire exit process more efficient and less stressful.
Why This Matters
A successful exit is one of the most rewarding moments in a founder’s journey, but it’s not without its challenges. Starting early, understanding your valuation, and fostering transparency are three steps that can make a world of difference.
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