What would you do you if you knew that you weren’t ready for your liquidity event?
If you’re like most business owners, you have one chance to get it right when it comes to your exit or liquidity event. You better get your liquidity event right and make it count.
Depending on who you speak to, up to 90% of liquidity events fail. For the liquidity events that work, most business owners leave up to 90% of their deal value on the deal table.
Are you prepared to leave 90% of your deal value, untold millions, in your buyer’s pocket?
While you may answer the above question with a resounding “no,” chances are this is exactly what you’ll do.
Who am I, and how do I know?
I was that kid who started his eLearning company right out of school with no money, experience, or team. I failed forward every day.
My grit and passion kept me in the game long enough to experience success. With success came an unsolicited offer from a sophisticated, experienced, and savvy buyer.
I said “no” to the 7-figure offer based on 3-times EBITDA. I said “yes” to mastering the art and science of preparing for a liquidity event.
Two years later, I said “yes” to a 9-figure offer based on 13-times EBITDA.
Today, I level the playing field for business owners through the art of preparation. The result is maximizing your business value on your liquidity event.
What can you do, and how do you do it?
You’re Not Ready For Your Liquidity Event Because You Can’t Master What You Haven’t Done
If you do not know where you are going, every road will get you nowhere – Henry A. Kissinger
So you believe you’re ready for a liquidity event?
After all, you’ve built a successful business. You’ve beaten the odds. Along the way, you’ve mastered new skills that took your company from zero to hero.
You tell yourself that you’ve put in your time, paid your dues, and are now the master of your destiny.
When it comes to running you’re business, you’re correct.
But when it comes to a liquidity event, the truth is that you’re not ready for your liquidity event.
Most business owners make the fatal mistake of believing the skills that got “here” and the ones to get you “there.”
Read and prosper “How To Avoid Committing The Worst Mergers And Acquisitions Mistakes.”
Unfortunately, most business owners are wrong. Dead wrong.
The world of mergers and acquisitions is a winner takes all environment. Your future buyer or investor hopes and prays that you make mistakes. Lots of mistakes.
After all, every mistake you make lines your buyer’s pocket with your hard-earned money.
When it comes to your business, you are the world’s leading expert. Yes, you have all the answers for your business, but you’re still not ready for your liquidity event.
What you’re missing are the right questions to ask for you to answer.
What can you do?
For starters, accept the fact that you’re not ready for your liquidity event.
Even if you’ve sold a business or raised capital, you’re still not ready for your liquidity event.
Congratulations! You’ve taken the first step to be ready for your liquidity event.
What’s the next step?
When It Comes To Your Liquidity Event, There’s No Room For Trial And Error
There are no second chances to get it right on your liquidity event – Jeffrey Feldberg
Don’t believe for a moment that trial-and-error is the way to go. If you do, you’re not ready for your liquidity event.
Forget about leaving 90% of your deal value on the table. With a trial-and-error approach, you won’t have a deal.
Read and prosper from “Actually Use Advice On How To Avoid M&A Deal Killers.”
When building a business, trial-and-error is the difference between success and failure.
Believing trial-and-error is the way to go means you’re not ready for your liquidity event.
Replace trial-and-error with preparing yourself and your business for a liquidity event.
In my mergers and acquisitions journey, I discovered nine key preparation areas. Mastering these nine preparation areas is the key to success and will make you wealthy and happy.
Your future buyer welcomes mistakes that lower the value of your deal.
Buyers will stop the process dead in its track for business owners who aren’t prepared.
Buyers can spend up to a quarter-of-a-million dollars on diligence. What frustrates buyers and has them run for the hills are business owners who aren’t prepared.
Truth can be stranger than fiction.
Buyers have shared that they prefer to invest more money in a company that’s prepared. In other words, buyers don’t want to waste time and money with business owners who aren’t prepared.
For your liquidity event, replace trial-and-error with the art of preparation.
When you’re prepared, you’re ready for your liquidity event.
Do you know the next reason of why you’re not ready for your liquidity event and what you can do about it?
You’re Not Ready For Your Liquidity Event Because You’ll Only Do It Once
This time, like all times, is a very good one, if we but know what to do with it – Ralph Waldo Emerson
You’re not ready for your liquidity event because you’ll only do it once.
Read and prosper from “5 Reasons For Exit Planning You Really Need To Know.”
Even if you’ve had a liquidity event, there’s a good chance you left up to 90% of the deal value on the deal table.
Your M&A advisors are only as good as how well prepared you are.
In other words, the better prepared you are, the better your M&A advisors will do for you.
The only way to be ready for your liquidity event is to prepare, prepare, and prepare. When you’re done preparing, prepare some more.
When you’re prepared, you have certainty that you will capture the maximum value.
And by the way, it’s only when you’re done your preparation that you’re in a position to hire your advisors.
There are nine steps of preparation to get from “here” to “there.”
The value of your business at your liquidity event is a reflection of your preparation.
Most business owners make one of two fatal mistakes.
First, waiting for the competition to make an unsolicited offer. Second, taking a “ready, fire, aim” approach, and hire the advisors before preparing.
Either of these mistakes put you in a position of leaving up to 90% of your deal value on the deal table.
It’s only after you prepare that you’re ready for your liquidity event.
Do you know the one thing you must do in your preparation to have you ready for your liquidity event?
Stop Believing M&A Myths
A little lie can travel halfway ’round the world while Truth is still lacing up her boots – Mark Twain
You’re not ready for your liquidity event when you continue to believe the seductive M&A myths.
Read and prosper from “This Is What Happens When You Believe These M&A Myths.”
The myths surrounding mergers and acquisitions are both seductive and alluring.
That said, a myth is a myth.
When it comes to your exit or liquidity event, you have one chance to get it right, and you better make it count.
Your future buyer or investor hopes that you believe the myths. After all, every mistake you make lowers your deal value.
Believing that you can save time and money by waiting for an unsolicited offer is a dangerous myth.
Right up there with M&A myths is believing you don’t need an investment banker.
And let’s not forget the myth that your company doesn’t need to run without you.
The number of M&A myths are many. The day you start to level the playing field is when you know instead of believing.
Know that you are ready for your liquidity event when you’ve mastered the art of preparation.
Speaking of myths, don’t believe that if you had a liquidity event, you know what to do the next time.
Most business owners leave the majority of the deal value in the pocket of their investor and don’t know it.
You can and should know that when you’re prepared, you are now ready for your liquidity event.
Do you know the 9-steps you must that have you dominate and win on your liquidity event?
Why You’re Ready For Your Liquidity Event When You’ve Put In The Time And Effort To Prepare
There is no such thing as luck, merely opportunity meeting preparedness – George S. Patton
When you’ve put in the time and effort to prepare, you’re ready for a liquidity event.
Most business owners prepare for their liquidity event months before the process starts.
Don’t make this fatal mistake.
Whether you’re exit or liquidity event is two years or seven years from now, start preparing today.
Preparing well in advance of your liquidity events saves your health, money, and time.
There are nine critical preparation steps you must take to get you from “here” to “there.”
When you master these nine steps, you have certainty that you’ll capture maximum value.
You can master these nine steps in ninety days and create a launch plan. Years of proven results from your preparation is what wins the day and increases value.
How do you have certainty that you capture the maximum value of your liquidity event?
Your preparation achieves two things for you:
- Find and remove the skeletons in your closet
- Identify and celebrate the once hidden Rembrandts in your attic. Your Rembrandts are areas that your business is world-class.
Most business owners, whether they’ve had a liquidity event or not, never master the nine steps.
As a result, most business owners are not ready for their liquidity event. In the process, most business owners leave the majority of the value of their deal in the pocket of their buyers.
Don’t be one of these business owners who walk away with a fraction of the deal value.
When you prepare and take the time to put in place your launch plan, you’re ready for your liquidity event.
You’re not ready for your liquidity event, and you didn’t even know it until now.
Whatever you do, don’t follow the path of most business owners who leave up to 90% of their deal value on the deal table.
You have one chance to get either your exit or liquidity event right, and you better make it count.
I said “no” to the unsolicited offer based on 7-figure and 3-times EBITDA. I said “yes” to mastering the art of preparation.
Two years later, I said “yes” to a different offer based on 9-figures and 13-times EBITDA.
My liquidity event journey had me create nine steps to help me prepare a launch plan that got results.
Today, I help business owners master these nine steps in ninety days. The result is a launch plan that provides certainty that you capture the maximum value.
There’s a difference between believing and knowing. Knowing you’re doing all the right things gives you the confidence and tools to dominate and win.
Success in both business and life is knowing both what to do and not do. Don’t gamble with your liquidity event.
Put in the time and effort to prepare to ensure that you’re ready for your liquidity event.
You’ve worked too hard and sacrificed too much in creating a successful business. Learn how to prepare so you will have the confidence that you will get what you deserve.
You can do it. I know you can.
Here’s to you and your success.
Your Biggest Raving Fan,