February 26, 2014

Why Every Company Should Have an Exit Strategy Advisory Board

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Whether you expect an exit in the next year or not for decades to come, having an advisory board in place to focus on this specific topic can yield incredible results. In addition, having quarterly or semi-annual discussions on the topic of potential exit strategies keeps a critical eye on the impact of your current business strategy and growth plans. Here are some specific ways an exit strategy advisory board can help your company:

  • Understanding today, before you all of sudden find yourself in a potential exit situation, what needs to happen to achieve the eventual valuation or terms you want when exiting the business
  • Identify ways to achieve a higher multiple, as well as potentially multiple bidders, for when the time is right for an exit 
  • Leverage the network of your advisors to introduce new key contacts, as well as individuals in the private equity and venture capital worlds
  • Provide a sounding board for different ways to grow the company and how they will affect the overall value of the business
  • When you do get an inquiry in someone wanting to buy the business, or when you are considering an alternative type of exit strategy, you immediately have in place a sounding board to help along the way.

Many companies have reported that having an exit strategy advisory board in place has helped them achieve up to double the valuation they would have otherwise achieved.  

Take the time to get advisors in place to make sure when you do exit your business, it is at the best valuation and terms possible.

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