Four Takeaways for Any Business Owner

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Four Takeaways for Any Business Owner

OC was honored to sponsor the VentureSouth Summit in Greenville, SC on Nov. 30 and Dec. 1.

We took away 4 lessons valuable to both angel investors and business owners at almost any stage of development:

  1. Selling a business is just one strategic option for a founder, but it is an important one. For companies with outside investors, it is a choice the founder has probably already made. In fact, experienced angel investors will assess exit plans begun before investing.

  2. Successful exits result from lots of work over a long period of time.  Estimated effort: 1-2 person years with an experienced team, and “if a very smart CEO and CFO wanted to learn enough to do a reasonable job themselves, I’d triple the time estimate — at least.”

  3. Exiting from a business is a process, like sales or recruiting.  The consequence of not thinking about exiting as a process is just the same as not thinking about, say, sales as a process — a business gets what it’s lucky to get, good or bad.

  4. Almost every company needs a team to manage this process. In fact, “the single most controllable factor in determining whether a saleable company will actually be sold is the capability of the exit team” charged with maximizing the exit price and ensuring that the eventual transaction closes. The ideal team is: the CEO, an M&A advisor (our role, by the way), a small committee of the board, and legal and accounting professionals.

There were also some good resources for any investor or business owner to browse:

www.exits.com/blog/preparing-to-sell-a-company-first-steps-in-the-exit-process

www.exits.com/blog/only-25-percent-of-saleable-companies-exit/

To learn more, call for our perspective on similar issues and how they apply in the Southeast.

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