Realise The Value You've
Worked So Hard To Build

The decision to exit your business can stem from various motivations—personal reasons, a desire for new ventures, or retirement. Take time to reflect on why you want to sell.

Exiting when your business is thriving rather than in decline ensures you maximise value.

Businesses with a clear succession plan typically sell for 20 to 30% more than those without.

Getting the right value for your business is paramount. Overestimating or underestimating its worth can derail your plans. Engage financial experts early.

For example, a client who wanted to sell his business for R40 million, discovered after a formal valuation that it was worth R15 million. Through a strategic exit plan delivered over six years, we helped increase the value of his business to R50 million, demonstrating the importance of realistic and proactive planning.

Timing is everything. Selling when your business is doing well rather than struggling will fetch a better price. Monitor market conditions, the economic climate, and industry trends. A long-term perspective is crucial.

Business owners should consider a minimum of five years to properly plan their exit strategies, to ensure important aspects are incorporated and executed.

If family members are involved in your business, plan for their future roles, will they continue or exit with you. Consult with other shareholders to align your exit strategy with their expectations. Determine if you want to sell entirely or retain a stake, and decide the capacity in which you wish to remain involved, if at all.

Family businesses with clearly defined roles and succession plans have a higher survival rate in the second generation. Your role as the owner is often indispensable, and that is why identifying and training a successor to yourself is critical. Sometimes, splitting your role across several individuals can ensure a seamless transition. This process takes time, so start early to avoid disruptions.

A good CFO is vital to crafting a robust exit plan. Additionally, financial experts, legal advisors, and business strategists are indispensable. They provide diverse perspectives and expertise, helping you navigate the complexities of the exit process.  External advisors can play a critical role in succession planning, especially in areas where internal expertise may be lacking.

Be realistic and meticulous about your exit plan. We spend a lot of time understanding the financial impact of your departure on the business and its operations – but what about you and the future? Plan for what you will do post-exit to avoid the void many entrepreneurs feel after selling their business.

Throughout the above points, you should already have adopted a founder’s mindset. Maintain that mindset not only throughout this process but even after you’ve exited the business to ensure you don’t lose a sense of purpose. View your business not just as a source of income but as a viable, scalable asset. This mindset will help you develop a succession plan that ensures the business continues to thrive and innovate beyond your tenure.