Business Exit Strategies: The Do’s And Dont’s
A business exit may be the largest transaction a leader will undertake, and the right approach can make a fundamental difference between success and failure. Mistakes can be costly, and here we present the most common slip-ups and how to avoid them.
In our Exit Strategies: 11 Worst Mistakes webinar, Kevin Uphill, Chairman of Avondale, is joined by Principle Consultant Sally Hardman to discuss how the right approach can make a fundamental difference between success and failure when it comes to selling a business.
Topics covered include:
- How to best prepare for sale
- Selecting the right advisors
- Reverse due diligence
- Handover and integration tips
- Negotiation and sales approaches
- Keeping M&A simple
When it come’s to your exit strategy, there are a lot of points you need to consider, which is why we recommend both watching the webinar below and reading the corresponding article – aptly named ‘Business Exit Strategies – How To Avoid the 11 Worst Mistakes‘ – to further understand and consider all of your options, the strategy necessary, and the pitfalls you might possibly face. One such example is the following that is #10 – Not Keeping It Simple, which is something we are all guilty of in all facets of life, but can prove detrimental in business:
10. Not Keeping it Simple
Most corporate advisors eat jargon for breakfast, or is that argon, the gas? It is not their fault. There are so many terms and definitions in mergers and acquisitions, each with a different nuance, that even seasoned operators can miss key points through misinterpretation.
As a rule, however, if any aspect is long-winded, or too full of jargon, do not do it – in particular, “heads of terms” need to be in broad layman’s terms with plenty of clarification and worked examples. The ‘heads of terms’ provide the framework and understanding between the parties before the later, definitive terms at completion and a simple robust foundation at this stage of a deal is essential. Each point should be clear, concise, and understandable.
If you would like to learn more about business exit strategies, sales, or a myriad of other business and M&A related topics, you can browse our Knowledge Base here for articles, guides, and further videos, or visit our service page Here.
Avondale are EME business advisors. Through our management consultancy, we support growth and scaling up. Through our M&A and corporate work, we secure investment and finance for EME businesses, help people buy and sell companies and enhance shareholder value. We recognise ambitious owners who require ambitious, specialist advisors.