A team of experienced succession specialists created Exit By Design to allow midsized business owners to start preparing for exit years in advance under what appears to be regular business consultation and professional services. This highly confidential and secure approach enables business owners to benchmark the value of their business today and then design and implement a strategy that increases the chance of exiting a business within the desired timeframe and with a higher valuation. It provides a 'safe harbour' for business owners to understand their choices and create more opportunities to attract suitable suitors under the correct terms.

Your business is worth what the market says. Many mid-sized business owners believe it's only worth what one potential purchaser is prepared to pay. An additional concern is that owners value their business based on their financial or emotional investment. A more accurate understanding of the range at which the market could value your business today and what it could be valued at in the future is vital. With this knowledge, you can create a more favourable, lucrative and (ultimately) more realistic outcome for an exit. It is where the Exit By Design process begins.

Exit planning is often left too late to deliver the desired outcome. Preparation for exits should be part of business planning processes. However, the confidential nature of exits is usually limited to last-minute due diligence and hasty negotiations. The right approach includes bench marketing, preparation around valuation and ongoing investment decisions that lead to presenting a more desirable offering to potential purchasers. Exit By Design allows you to start the process now, ensuring that your future business decisions increase visibility amongst a deeper pool of potential purchasers and offer a business with fewer liabilities and more scalable potential even in a mature market.

Many of the business support services you use today have a role in developing and implementing an exit strategy. However, in the case of exit planning, they take on another dimension. Accounting focuses on shedding liabilities and investing in ways that increase valuation. Marketing and sales have a clearly defined path to achieving increased revenue and profitability within an agreed timeframe, with a scalable and predictable sales model. Marketing has the added dimension of growing visibility and reputation for potential purchasers, especially with a strategic acquisition. Legal's goal is to streamline to due diligence process by preparing in advance documentation around ownership of assets and IP and later the terms of any exit agreement. Professional services guide this whole process, overseeing the management of every piece of the puzzle and ensuring that you are ready for any opportunity (or challenge).

Exiting a mid-sized business is often limited to the following outcomes, succession planning, management buyouts or strategic acquisitions. The highest valuations typically come from the strategic acquisition model for most mid-sized business owners. However, valuations are often below expectations for the following reasons: The strategic acquirer of your business is more prepared and takes charge of the terms of any purchase. They usually have the upper hand in the negotiation because they have planned for such an acquisition (hence the term 'strategic acquisition'). Before they talk to you, they might be in discussion with others in your space and have predetermined the value of your business based on your profile. They will also be using predetermine valuation models often based on an industry multiple of EBITA. However, such a simple process can severely undervalue your business. Advanced exit planning allows you to understand the actual value of your business from the outset and demonstrate efficiency and scalability. You can also verify the value of your IP, assets, inventory, and client list at a moment's notice. 

Like selling a house, the greater the number of bidders for your business, the more chance of achieving an above-market sale price. By adding another target audience and dimension to your marketing practices, you can create an environment where you become the target of acquisition by unimagined purchasers. Unbeknown to you, others are looking to enter or make strategic acquisitions in your sector that are not on your radar. Many larger organisations have teams with a sole focus on mergers and acquisitions. These teams are highly skilled at identifying opportunities through online search activities. They use similar search and discover features as your customers but look at every aspect of your business through an unemotional pragmatic prism. They are looking for desirable acquisitions while identifying weaknesses they can exploit in any negotiation. Your role is to ensure that you are in charge of the talks by having others more motivated to acquire your business. It would be best if you crafted how any strategic acquirer perceives your business through their online research. Marketing has a pivotal role to play in this process.

The investment decisions you make in a business you plan to exit can differ from the same decisions you would make for a company you would operate in the foreseeable future. You may not take on the financing of leases or purchasing equipment that would show up as a liability on a balance sheet at the time of exit. At the same time, you may increase investment in activity that demonstrates revenue growth potential or realisable IP. You may also invest more in technology that streamlines and captures business processes. When planning an exit, every investment decision you make should be made through the prism of the impact at evaluation.

Most mid-sized business owners don't exit their business at their peak. They either leave when they have lost their passion, there's a downturn in sales (or in the market), or they exist within a narrower time frame. Any such exit will generally result in a sub-par result and often a feeling of loss for a business owner. A business exit should not be a defeat. It should be a triumph, the ultimate conclusion to a chapter in your life and the beginning of a new chapter entirely on your terms. Having an exit strategy allows you to prepare for opportunities that may happen between when you intend to exit and when the ideal purchasers make you an offer. Exit planning puts you in the driver's seat and allows you to exit your business on your terms.

If you plan to exit your business, you only want business partners and possibly some family members to be aware of this plan. It is paramount that your people and competitors have no knowledge or understanding of your objectives. Keeping your circle tight and ensuring those in your group play a supporting role is paramount. Exit By Design is a consortium of business professionals and businesses proficient and experienced in driving mid-sized business exits. They all operate under a mutual NDA while providing what appears to anyone as standard business consulting services. This approach allows you to work with the team for years without anyone discovering your plans. To all, it seems 'business as usual. Our team does not promote their connections to Exit By Design outside of confidential calls, information exchanges or in-room discussions. This approach prevents anyone from connecting the dots through online research.

Our team then become your secret weapon in helping you exit your business on the terms and valuation that most align with your values, expectations and hopes.