X MULTIPLIERS: EXIT STRATEGY
Welcome to Infinite CXO: Your Partner in Exit Strategy.
In the exit strategy consulting industry, the important word to remember is readiness. While all exit opportunities are unique, all exits also require three key components of readiness: owner readiness, business readiness, and market readiness. When considering your exit strategy, ask yourself “what’s my WIN?”. Your win should include your personal and business goals and define what a successful exit looks like for you.
Did you know the average exit strategy takes 3 years to properly execute?
If you’re trying to determine whether or not you need an exit strategy – you do. An exit strategy is a planned approach to transition ownership or finalizing a situation to either maximize benefit or minimize damage. For business owners, this is in reference to a strategic plan on how to sell and turn over ownership to investors. There’s a school of thought in exit strategy consulting shared by many consultants that says owners should have the exit in mind from the start and build the business to sell it regardless of their intentions down the line.
EXIT STRATEGY APPROACH
With a successful exit strategy in place, business owners can also make a sizable profit from the sale of the business, minimize stress, and be prepared for whatever comes next.
At Infinite CXO, we understand there are a wide variety of paths you could go down when it comes to a potential exit or transferring ownership of your business. We have the consulting skills and experience that makes us experts on pairing you with the strategy that best fits your situation, your goals, and where you wish to end up.
Working with us means getting the care and attention you need for exit opportunities on any level, from experts on corporate strategy on any level. Read briefly about each component of our Exit Options Approach to better understand true exit readiness so our team can help evaluate these potential exit paths through the lens of what matters most to you and which route will get you to your WIN.
Annuity
If you don’t necessarily want to sell your business but no longer want the responsibility of running it, consider turning the business into an annuity. You can do so by hiring someone to take the role of CEO and potentially building out a Board of Directors.
You’re then relieved from the day-to-day operations while still receiving a monthly income. It’s a creative solution enabling you to hold on to the business, be involved in some (or none!) of the decisions, and steer your legacy without forcing an unfavorable sale.
Inside Sale – Family Member(s)
An inside sale is a sale to someone who is familiar with the business. In family businesses, transactions often happen between generations of family members. But keep in mind that sharing a last name doesn’t automatically make someone the top qualified buyer and future owner for the family business. In both the decision and the transition, it’s recommended to work with a Business Transformation Firm like Infinite CXO to look out for the business’ best interests from an objective viewpoint.
Inside Sale – Key Employee(s)
When you’ve put in the time and sacrifice to build a stable business and career path, the reality of exiting can bring a world of emotions. An inside sale to one or more key employees can help make your exit experience feel less final and more like a passing of the torch to the person or people who have been working for you for years or decades. Inside sales, whether to family members or key employees, take many shapes and forms, including management buyouts, Stock Appreciation Rights (SAR), Employee Stock Option Plans (ESOPs), and other strategies you can discuss with us.
Outside Sale – Strategic Buyer
Suppose you have a salable business and do not see a candidate for an inside sale in your family or company. In that case, our team can help search for an outside buyer, either a person or company who sees value and opportunity in purchasing your business. There are many different types of buyers to recognize, each with different motivators. Strategic buyers, for example, value a business based on the return they expect from an acquisition or majority merger.
Strategic buyers typically make very attractive offers, with the sale price often contingent on the success of the business after the sale. These buyers are willing to pay more because they believe it is more efficient and cost-effective to take over an existing company than to build a new business from the ground up.
Infinite CXO has strategic relationships with buy side Investment Bankers that facilitate and have access to buyers looking for a business like yours.
Outside Sales – Financial Buyer
A financial buyer is a sophisticated, professional buyer such as a financial institution, insurance company, or private equity research firm in the finance industry. Generally, financial buyers have large pools of money. Private equity firms see companies solely as marketable assets, deciding to buy or not buy a business based on the rate of return the company may generate, similar to hedge funds.
Financial buyers usually focus on companies with at least $10 million in revenue and $1 million in EBITDA. Financial buyers, like private equity firms or financial institutions, wants to see a strong management team in place, solid financials, growing revenue, and a profit.
Infinite CXO has Strategic Partnerships with Venture Capital Firms looking to purchase or invest further capital into businesses like yours.
Partner with Infinite CXO today and unlock the power of a comprehensive Exit Strategy to execute your successful and planned transition.
How We Help Your Business
At Infinite CXO, we are committed to helping your business thrive through our exit strategy services. Here’s how we deliver value to our clients:
Partner with Infinite CXO and unlock the power to drive your business forward.
Contact us to schedule a consultation and embark on an exciting journey towards empowering hidden potential.
