According to a 2013 TD report, a huge percentage of their business clients had no exit strategy. Some 50% of the baby boomers, who had built their business, were simply going to lock the doors and go home, when retirement day arrived. They are on the Freedom 85 plan.
Since that time, some companies have fallen on trying times, interest rates are low, but banks have pulled up the drawbridge. What does this mean, and how can business owners take advantage? After all, in every economic downturn some companies thrive, while competitors go the wall.
What will happen?
Most companies will do nothing and just tough it out, as long as they can, hoping that good times will come back.
Some companies, will take the opportunity to polish their company, and prepare for it to be purchased by a competitor.
Some will buy their competitors; build a bigger better company, and position it for sale.
Since the exit for 2 of these options is a sale, what will buyers look for in valuing your company? They will look for turnkey operation, strong management, that is not dependent upon the owner. They will look for gross margins above industry standards. They will look for strong systems. They will look for a strong balance sheet with easily manageable debt. They will look for a credible customer list.
Since these are the characteristics of a company that will sell, what are you doing to make your company saleable?