When business owners begin to contemplate and plan an exit strategy, it is possible and even probable that they will possess an inflated view of business value. The metrics they use to make projections and decisions may have been developed internally, or by investors who are too close to the business.
Exit strategies take time to plan, develop, and execute. Therefore, if you are interested in exiting, or, are trying to attract venture capital, angel investors, private equity or debt funding, you could consider seeking the views of an experienced and knowledgeable advisor.
Sumus can provide market analyses and value assessments that will be essential to achieve funding or an exit.
Too often, owners do not take the opportunity to solicit outside expertise regarding business value. Even when they do bring in assistance, sometimes they have waited too long to organize their business to maximize value. Then, when the bankers and investment firms begin due diligence, the empirical assessment associated with mergers and acquisitions often disappoints.
The takeaway here is to proactively initiate an assessment of business value to develop a realistic exit strategy. Rather than rely on partners or instincts, secure outside advisory services to provide counsel and objective advice on your business metrics and your market value.