Exiting your company?
Congratulations.
You’re embarking on a journey that will change your life. For the better, or worse.
How can exiting your company change your life for the worse?
Picture it.
You’ve worked hard, sacrificed, and put everything on the line.
You’re the poster child for transforming the “impossible” into “I’m Possible.”
You found a painful problem you’re passionate to solve, and your customers pay you to take the pain away.
Over time, your business has grown. Your employees love you, and your customers rave about you.
And let’s not forget about your profits.
Yes, you’re living the dream.
And now it’s time to cash in your chips.
You’re exiting your company and have plans. Big plans.
But here’s the thing.
You don’t know what you don’t know.
When it comes to exiting your company, the odds are against you.
Most entrepreneurs drop the ball at the finish line.
Buyers not only hope you’ll make mistakes, but they also count on it.
When exiting your company, every mistake you make lines the pockets of your buyer.
Millions of dollars lost from, well, stupid mistakes.
I should know.
I was the kid right out of school who started his EdTech with no money, experience, or team. Despite the odds, I built a successful company that became the industry leader.
While I could tell you all about the 9-figure exit I had, that’s not the story.
The story-behind-the-story is how 24 months earlier I had a 7-figure offer.
How did I go from 7-figures to 9-figures?
When exiting your company, there are five things most entrepreneurs overlook. At their own expense.
You have one chance to get it right when exiting your company.
Want to know what I did and what you can do to ensure you get it right when exiting your company?
Keep reading.
Ask THE Only Question Before Exiting Your Company
Every new beginning comes from some other beginning’s end – Seneca
Do you know the only question you must ask before exiting your company?
Most entrepreneurs neither know nor ask this one question. To their detriment.
Nothing worst than the time, effort, and money spent to sell your company and you regret it.
Talk about a nightmare that didn’t need to happen.
So, what’s the question you ask?
The question is only two words. But these two words are a life changer.
The question is: Now what?
Imagine you’ve sold your company. Congratulations!
With all the time and new-found money, you buy your toys, travel the world and cross off your bucket list.
Great!
But now what?
What will you do with the rest of your life that keeps you happy and fulfilled?
Remember, success without fulfillment is a failure.
What if you can’t answer the ‘now what’ question?
Stop whatever you’re doing.
It’s time to rethink exiting your company.
Check out, ‘Revealed: The Only Question To Ask Before Selling Your Business.’
Yes, money makes life better but it does not give fulfilling and lasting happiness.
Many times, the best action in both life and business is the one you don’t take.
Congratulations if you feel energized with your answer to the ‘only’ question.
You’re ready for the next step.
Check out my article, ‘5 Important Things You Need To Know About Successful Business Exits.’
Now let’s focus on avoiding one of the classic mistakes you don’t want to make when exiting your company.
This one mistake kills more deals and loses more money for entrepreneurs than any other.
Do you know what it is?
Keep reading to find out.
Before Exiting Your Company, Ensure You Have The Best Exit Team (Or Else)
No man is wise enough by himself – Plautus
Before exiting your company, avoid the costly and stupid mistake of not having an exit team.
Do you know one of the key factors of my EdTech going from a 7-figure offer to a 9-figure offer?
The exit team.
What’s an exit team and why is it so important to have before selling your company?
Your exit team has eight types of advisors. It’s the smart entrepreneur who brings on the eighth advisor. Keep reading to find out why.
Before exiting your company, ensure your exit team has the following people:
- Investment banker
- Strategic advisor
- Accountants
- Tax advisor
- Mergers and acquisitions lawyer
- Your management team
- Existing Customers
- A personal advisor to help you manage the process
When it comes to exiting your company, don’t fall prey to the buyer who gives you an unsolicited offer.
Why is an unsolicited offer so popular with entrepreneurs?
The honest answer is that entrepreneurs are both too busy and lazy to put in the time, effort, and work.
Buyers are smart, sophisticated, and savvy. Your loss, through a lower company value, is the buyer’s gain.
Read more about this with ‘Do You Know The 7 Mistakes Every Buyer Wants You To Make When Selling Your Business?‘
How Your Exit Team Unlocks Your Company Value And Sweet Success
In union there is strength – Aesop
Before exiting your company, know that your exit team will make you or break you.
You decide.
Remember me and my unsolicited 7-figure offer.
I wasn’t prepared, and the buyer’s offer reflected it.
Enter my exit team.
The investment banker ensured we had an auction for the sale of my EdTech.
Do you know why buyers’ hate auctions? Buyers compete against each other in an auction. As a result, company value increases.
A talented accountant ensures you have the financial reports and statements needed. These financial statements help support your value.
The strategic advisor helped my team think through the challenges and opportunities.
When’s the best time to work with a tax advisor?
Ten years ago.
The next best time is today. Tax plans take years to put in place and qualify for significant savings. Stary today.
There are lawyers, and there are merger and acquisition lawyers. Ensure you work with the latter. Selling your company is both an art and science. The right lawyer helps you get the deal across the finish line while protecting you.
Let’s revisit the importance of your management team in the next section.
Your existing customers play a key role in determining your company value. Your future buyer wants to hear from customers why you walk on water.
Last, but not least, is the personal advisor who has mastered the art of selling companies. The personal advisor can even be an investment banker.
Why do you need such an advisor?
There’s a little-known secret in the merger and acquisition world. Your investment banker’s BFF is your future buyer. Read all about it here.
You don’t know what you don’t know, but the personal advisor does. As a result, the personal advisor is your BFF and puts your needs first.
With your exit team in place, you’re ready to tackle the only question your future buyer will ask.
Do you know what it is?
Keep reading to find out.
Before Exiting Your Company, Can You Answer ‘Yes’ To Your Future Buyer’s Simple Question?
A successful team is a group of many hands and one mind – Bill Bethel
Do you know one of the first and most important questions your buyer will ask?
Before answering your company, you better know this question and be able to answer ‘yes.’
The question is: Does your company run without you?
Entrepreneurs who answer ‘no’ will lose the deal or suffer a much lower company value.
Why does your future buyer care if your company runs without you?
Simple.
When exiting your company, you’ll no longer run it.
Many entrepreneurs protest that they have every intention of staying in the company.
I’m sure you do.
But tell me your intent again once you have all those zeroes in your bank account.
Life takes on a different meaning.
Buyers know this and do whatever it takes to protect their investment.
Enter your management team.
Your management team is what stands between you exiting your company at a high value, or not at all.
If your company doesn’t run without, it’s not the time for exiting your company.
You have one chance to get it right when exiting your company.
Take the time and spend the money to build your dream team.
Read ‘Why You’ll Be Happier And Richer When Your Company Runs Without You‘ for more information.
Ready for even better news?
Whether you sell your company, or not, you’ll get your life back when your company runs without you.
Exiting Your Company? Find Yourself A Talented Tax Advisor To Save You Money And A Financial Advisor To Grow Your Money
Hire an attitude, not just experience and qualification – Greg Savage
You’ve worked too hard and long to have ‘The Man’ take your money through taxes. You’ve sacrificed too must to lose your money through foolish spending and investments.
How do you protect yourself BEFORE exiting your company?
Find yourself a talented tax advisor and financial advisor.
Sounds easy, right?
It isn’t.
Recognize that you don’t know what you don’t know.
There are too many advisors to count to take your money and charge high fees. In return, you get poor results at best or lose money at worst.
Find the right tax advisor to put in place a plan to save the largest amount of taxes on the sale of your company.
And while you’re at it, find a talented financial advisor who will protect and grow your wealth.
Do this now, and you’ll thank me later.
How do you find the right tax and financial advisors?
Before exiting your company, find other entrepreneurs who already sold their company.
Find as many entrepreneurs as you can.
Talk to these entrepreneurs to find out which advisors you should either talk with or avoid.
Results speak for themselves.
And always remember that the past results don’t guarantee the same future results.
You Better Figure Out How To Increase Your Company Value (A Lot) Before Exiting Your Company
The future influences the present – Friedrich Nietzsche
Before exiting your company, you better figure out how to increase your company value (a lot).
Why?
When exiting your company, the higher your company value the bigger your payday.
And besides, you’re the best one in your company to figure out how to do this.
How do you increase your company value?
You have two levers for increasing your company value:
- The future
- Ensuring your business model doesn’t suck
Let’s start with your business model.
I have good news and bad news you need to know before exiting your company.
The bad news is if you’re like most businesses, your business model sucks.
I’ll say it again.
Your business model sucks.
The great news?
Do two things with your business model your company will have both higher profits and value.
What are the two things you need to do before exiting your company?
First, ensure your business model is a recurring subscription-based model. Subscriptions provide predictability and certainty. Your accountant will love you for it and so will your bottom line.
Second, and most important, switch to a revenue sharing model with your customers.
Easier said than done. You’ll need to figure out how to solve a big, ugly, and painful problems for your customers.
In the eyes of your future buyer, revenue sharing has you go from ‘zero’ to ‘hero’ with your company value.
For full details read my article, ‘Why Your Business Models Sucks And What You Need To Do About It.’
Show Your Company’s Untapped Future Today And Walk Away With A Bigger Pay Day
We invest in the future – Greg Plitt
When exiting your company, know this and know this well.
Buyer’s pay a premium for companies that have a bright and untapped future.
My Rockstar entrepreneur, I know that if you had more money, time, and resources you could have done more.
And so does your buyer.
Show your future buyer the opportunities left on the table from lack of money and skill.
Serious?
Yes.
Showing your vulnerability isn’t a weakness. Instead, your future buyer now has a road map to new markets and opportunities.
Help your buyer see the future, and you’re helping yourself create a bigger payday.
Think back to the times you wanted to expand to other countries but couldn’t from lack of time and money.
How about all those line extensions you wanted to do but couldn’t because you were too busy.
Paint the picture of what your company would look like if time, money, and talent were limitless.
Your buyer has the time, money, and talent that you didn’t have access to. When you remove the blindfold for your buyer, the future is bright and clear.
More opportunities translate into more profits for your future buyer. The bottom line is the bottom line.
When exiting your company, a bright and untapped future allows you company value to soar.
For more details check out, ‘Conquer And Win When You Know How To Increase The Value Of Your Business.’
Do this now, and you’ll thank me later.
Conclusion
Exiting your company? Congratulations.
But before you do, you better avoid the five most common costly and stupid mistakes.
Over the years you’ve put everything on the line to make your company successful.
What a tragedy it would be to blow the one opportunity you have when exiting your company.
Most entrepreneurs make five costly and stupid mistakes that do one of two things.
First, kill the deal. Second, leave so much money on the table that the entrepreneur shouldn’t have sold in the first place.
I should know.
I made each of the five costly and stupid mistakes when a buyer approached me to buy my EdTech for 7-figures.
My only saving grace was saying ‘no’ to the buyer.
Less than two years afterward, I said ‘yes’ to a 9-figure offer.
How did I do it?
I dove into the mergers and acquisition world to learn the art and science of selling a company.
As a result, I created a playbook of exactly what to do and not do when exiting your company.
My countless failures along the way, time spent, and money wasted is all to your benefit.
What can you do to ensure that when exiting your company you make the most of the opportunity?
Start at the beginning. Read the first strategy and stay with it until you master it. You’re now ready to move on to the next one.
Do this for each of the strategies and you’ve positioned yourself for success.
The future is yours if you want it.
So what are you waiting for?
Here’s to you and your success!
Thanks.
Your BIGGEST Raving Fan,
Jeffrey Feldberg
Today, Feldberg's passion is helping you extract your deep wealth. The 90-day Deep Wealth Mastery program helps create a solid foundation for three areas: increasing profits to enterprise value and optimizing post-exit life. Deep Wealth Mastery offers strategies and insights drawn from Feldberg's rich experience. The strategies from the trenches get results. Jeffrey's vision is to increase the social fabric of society one entrepreneur at a time.
Learn more through https://iapdw.com/prosper
