An interesting story that comes to mind is the battle between Snap Inc, the owner of the Snapchat app, and the potential sale they were faced with in 2013 just 2 years after launch. Facebook approached with an offer reported to be in the region of $3bn, an offer they made to get a competitor off the scene before they became too popular to compete with.
Roll forward to 2017 and Snap's value rose to a staggering $29bn when its shares were released for public sale. In 2013 Snap had six employees; when the company went public four years later, each of those employees held a paper fortune worth in excess of Facebook's offer of $3bn. This is a great example of knowing when to sell and who the company is worth more to.
There comes a time for many business owners when they will make the decision to sell their business. The most common reasons are reaching a point where they want to retire or needing the excitement of a new challenge, but there can be countless other reasons. When you reach this point there are obvious practical things to consider such as having your business valued and loooking into who the prospective buyers may be.
But the big question is 'when is the right time?'
Potentially, there is no 'right time', but there is always a need to consider your Exit Strategy, there is no one size fits all, and this will vary from business to business.
In our experience of working with business owners to maximise the value of their business at exit, we believe you should be prepared and have your business ready for sale tomorrow. A good first step is to ask yourself the questions;
We have extensive experience to offer that can help guide you through the answers to these questions (and more) and to help you prepare for a successful sale, even if that seems a long way down the line.
To talk about what you need to consider as part of your exit strategy, please contact us for a confidential chat about the future.