I often speak with business owners that are considering an exit. They’ve built a profitable business and want a high multiple. What they don’t realize is that they are intertwined into the company’s DNA.

When you’ve run a business for quite a few years, you tend to lose track of how much you’re responsible for and how easy it is for you.

The primary reasons investors purchase a business is for:

– Higher ongoing cash flow/profitability

– Scalability

– Complementary to their existing business

– Efficiency and profitability gains through above items

Most owners want the cash from an exit and do not understand that they will probably have to endure an earnout provision before that occurs.

Not always an easy conversation for me to have or a fun process.

However, building a company that can run effectively without you should be you’re goal if you’re looking to maximize the exit.

“Sometimes you’ve got to hug the cactus” to get the maximum results.

Rich Hall

Business Coach

Rich Hall Group

Originally Published on https://www.richhallgroup.com/blog

Rich Hall Certified Exit Planning Advisor | Business Advisor | Baby Boomer

Rich is a Certified Exit Planning Advisor (CEPA) and business advisor with substantial experience in business coaching, advising, leadership development, business valuation, value acceleration, succession planning, and more. Rich is also a certified Baby Boomer!

​He is a member of Silver Fox Advisors, facilitates CEO Roundtables and nationwide mastermind groups. He was recognized as one of the Top 15 Coaches in Houston in 2022.

​Rich earned his undergraduate degree in Management Science from Georgia Tech, his MBA from the University of Houston, and his CEPA certification from the Exit Planning Institute.

He is the proud father of three sons, Jeremy, Mark, and Daniel, the grateful husband to his wife Jamie, and best friends with Bucky and Riley (dogs).