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:
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.
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.”
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.
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:
To learn more, call for our perspective on similar issues and how they apply in the Southeast.
Posted on December 2, 2016
by Frank Williamson