Latest news with #exitstrategy
Forbes
a day ago
- Business
- Forbes
Make Your Business Worth Millions, Even If You're Not Ready To Sell
Many entrepreneurs start a business with the idea of creating more freedom and control in their lives but end up creating a job they can't step away from. The focus is on income generation and bringing in revenue without realizing that true financial freedom comes from building equity. The real wealth of a business is in the equity it offers when it has transferable value and can be scaled, sold, or passed on. When you structure your business as an asset, you are no longer trading time for money. Rather, you create something that works for you, attracts investors or buyers, and will provide a financial payoff when you decide to exit. It isn't about making more money now; it's about creating long-term wealth that changes your financial future. Let's walk through how to shift your mindset from making money to building wealth, how to build a self-sustaining operation, and prepare for a profitable exit. Shift your Mindset from Making Money to Building Wealth in Your Business Focusing on generating income is a short-term goal. When you focus on equity, that is the value of your business as an asset. It's what you own after all debts are paid, and it determines how much your business is worth to a buyer. While bringing in income in your business pays the bills, building equity in your business can deliver a life-changing financial event when you sell or transfer ownership of the business. Take for example a small business earning $500,000 in annual profit that was able to sell for $2.5 million – five times its yearly earnings. This is because the business had built strong systems, recurring client contracts, and a brand that wasn't dependent on its owner. That lump-sum payment gave more financial freedom than years of steady income could. Here are seven ways you can build the equity in your business: One of the biggest barriers to building a sellable business is when the business can't function without you. Buyers want an asset to invest in, so if you are the only one who can close deals, manage clients, or keep operations running, the value of the business decreases. The solution is to create documented systems and processes, develop a trustworthy leadership team, and implement clear standard operating procedures without your constant involvement. By leveraging technology and automation you can streamline operations, take on more clients, and reduce errors without having large costs. Key performance indicators (KPIs) and real-time dashboards allow you to monitor your business from anywhere, making it easier to manage growth without micromanaging. Potential buyers will see scalability signals that your business can expand efficiently, deliver higher profit, and lead to a better return on their investment, and that will make it more valuable to them. A strong financial foundation is the backbone of a wealth-building business. Accurate financial records are non-negotiable. By keeping your financial records clean and optimizing profit, your position as a good investment will yield to a higher valuation and a smoother, more profitable exit. Intellectual property is one of the most valuable assets in a business. Protecting these assets not only safeguards your competitive edge, but also increases the market value of your business. The more defensible and distinctive your intellectual property is, the more leverage you have in negotiations at the time of sale. Relying too heavily on one client, product, or market leaves your business vulnerable, and buyers see that as a risk. Diversifying revenue streams creates stability, making your business more attractive to buyers. Businesses with diversified or recurring income are often valued higher because they show consistent performance and reduced reliance on a single revenue source. The best time to plan an exit is long before you think you'll need it. Early planning gives you time to increase valuation. Work with exit strategy experts to help you navigate the process to ensure you will walk away with the maximum return on the asset you've built. Step back and evaluate your business like a buyer would. Look for gaps that you can fill to ensure you close them before buyers come along. This makes your business more appealing and drives up valuation. When you reinvest in growth continually, this signals to buyers that your business is forward thinking, scalable, and capable of delivering strong returns long after the sale. The bottom line is that building a business as an asset doesn't happen by accident; you need a strategy with long-term vision. By focusing on these tips, you can build a business that will deliver on equity and deliver a life-changing financial event in the future.
Forbes
2 days ago
- Business
- Forbes
What Should You Do Now If You Plan To Sell Your Business Later
What if one decision today could make you hundreds of thousands of dollars more when you eventually sell your business? What if preparing now—not later—meant the difference between scrambling to offload your company and confidently walking away with your dream number? Here's the truth most business owners don't hear early enough: Selling your business isn't an event. It's a result you work towards. And if you treat it as a project, you're already ahead of 90 percent of small business owners who wait too long and miss out. Whether you plan to sell in six months or three years, this article will show you exactly what to do now, so you can stop guessing and start building toward the big exit you actually want. Step 1: Clarify Your Timeline and Capacity Before anything else, ask yourself three simple questions: Your answers set the stage for your entire exit strategy. A founder who wants to exit in six months will need to sprint and sell based on today's value. But if you've got a couple of years, you can increase your valuation, build better systems, and attract better buyers. A longer timeline gives you the luxury of optimizing. A shorter timeline calls for fast decisions. What matters most isn't how soon you want to exit. It's whether you're honest with yourself about the time and bandwidth you have between now and then. Because the exit clock starts ticking the moment you decide to sell and your energy is a currency you'll need to spend wisely. Do this now: Write down your ideal exit window and make a quick note on how much time, attention, and team support you can invest in preparing. Be brutally honest. A one-person show with low bandwidth needs a different path than a seasoned team with time to optimize. Step 2: Identify the Value Gap Next, let's talk numbers. Most business owners skip this step or delay it until a buyer is already at the table. Big mistake. Because when reality hits and your current valuation is far below your dream number, there's no time left to close the value gap. The only way to avoid disappointment later is to run the numbers now. Getting a valuation doesn't mean you're committing to selling next week. It means you're treating your business like the asset it is. Knowing your current worth gives you options: protect what's working, double down on growth, or pivot your model before the market decides for you. This is where so many owners get stuck. They assume their revenue equals value. Or they fixate on a number they've heard from peers who sold their business. But your business isn't worth what you hope for. It's worth what the market sees as de-risked, profitable, and transferable. Do this now: Use an independent valuation tool (one that's not tied to brokers or buyers) to get a realistic range for what your business is worth today. Once you know your number, compare it to your ideal exit goal. That gap will decide your strategy. Step 3: Assess Your Exit Readiness Let's say you've clarified your timeline. You've mapped out your value gap. Now it's time for the big question: Many aren't. Even those with strong revenue or healthy margins fall apart during due diligence or fail to attract serious buyers. Because what's under the hood isn't ready for someone else to drive. Ask yourself: These aren't just operational questions. They're business valuation questions too. Because buyers don't pay for chaos. They pay for clean, stable, and transferrable. And if your business still leans heavily on your face, name, or energy to function, you're not selling a business. You're trying to sell a job. That's a harder sell and often comes with a lower price tag or painful earn-out conditions. Do this now: Take an exit readiness assessment to score your business across the key categories of sellability: financials, team, operations, and owner dependence. Even if you think you're in a good spot, an exit readiness assessment will highlight weak links before a buyer does. Step 4: Prioritize One or Two Strategic Moves At this point, you've done more than most founders ever do before they put their business on the market to sell it. By now, you know: That's enough data to make smart, focused decisions. Now comes the fun part: choosing your next move. This isn't the time to try fixing everything. It's about identifying the one or two actions that will move the needle most based on where you are now. Here's what that might look like: Too many business owners try to do it all and end up exhausted without much impact on their business value. But the best exits come from clarity and consistency, not chaos and trying to do it all. Do this now: Pick one or two strategic priorities that align with your current stage. Then block time monthly to build and track progress. Treat your exit like a product launch or a key client project. It deserves your best execution. Step 5: Don't Wait for a Business Buyer to Start Preparing This is where most owners blow it. They wait until a buyer shows interest. Or a broker calls. Or an opportunity knocks. And suddenly, they scramble to get their books in order, clean up operations, or explain systems that only live in their head. Deals fall through all the time because of this last-minute scramble. Serious buyers don't want potential. They want proof. And if you can't show up with a clean package (financials, contracts, SOPs, and a team that runs the business without you) you'll either lose the deal or take a major valuation hit. Waiting to prepare is like waiting to buy insurance until your house is on fire. The moment has passed. Here's the truth most advisors won't say out loud: The best deals go to the most prepared sellers. Preparation wins. Every time. Do this now: Even if selling your business feels far off, act like your buyer is coming tomorrow. Set up folders, clean your books, document your offers, and build the kind of team that impresses buyers without needing you in every meeting. The Smartest Exit Strategy Starts Now You don't need to know exactly when you'll sell. You just need to act like it's coming. Because it is. Whether it's next year, five years from now, or a surprise offer you never saw coming, your exit will be smoother, more profitable, and more empowering if you start preparing today. Here's the recap: Most business owners exit from a place of burnout, boredom, or urgency. That's when your options shrink and your leverage disappears. But when you prep early, you get to exit from a place of power. You get to sell on your terms, with confidence in your numbers and clarity in your plan. Don't just dream about your big exit. Design to sell your business. The best time to start was yesterday. The second-best time? Right now.
Yahoo
04-08-2025
- Business
- Yahoo
Ty J. Young Wealth Management Launches "The Official Guide to Selling Your Annuity Business" to Support Growing Acquisition Strategy
ATLANTA, Aug. 4, 2025 /PRNewswire/ -- Ty J. Young Wealth Management, a leading wealth management firm, today announced the release of its new ebook, "The Official Guide to Selling Your Annuity Business" This comprehensive guide is designed to provide financial advisory firms with essential insights for successfully navigating the sale of their business. As a rapidly growing wealth management practice, Ty J. Young Wealth Management has successfully acquired 41 businesses as its footprint has expanded across the United States. The new book leverages that extensive experience, offering a detailed roadmap for owners considering their exit strategy. "As a leading wealth management firm, we are continuously seeking opportunities to expand who we can serve," said Ty J. Young, CEO of Ty J. Young Wealth Management. "We developed 'The Official Guide to Selling Your Annuity Business' not only as a resource for the industry but also as a direct reflection of our commitment to actively acquiring more advisory companies. Our goal is to empower business owners with the knowledge they need, whether they choose to partner with us or pursue other paths." "The Official Guide to Selling Your Annuity Business" is available for immediate download at About Ty J. Young Wealth Management Ty J. Young Wealth Management, established in 1998, is a leading independent wealth management firm committed to providing comprehensive financial solutions. With over $1 billion in assets under management and serving clients nationwide, the firm is renowned for its expertise in investment management, retirement planning, and insurance. Ty Young and the firm's strategists are frequently sought after for their insights, appearing in prominent media outlets such as CNBC, Forbes, and Fox Business. Discover how Ty J. Young Wealth Management can help you achieve your financial goals at: View original content: SOURCE Ty J. Young Wealth Management
Yahoo
22-07-2025
- Business
- Yahoo
Arco Vara AS Initiates Exit Process from the Bulgarian Market to Refocus on Estonian Development Projects
After nearly twenty years of successful business activity in the Bulgarian real estate market, the Management Board of Arco Vara AS has initiated a strategic exit process, with the ultimate goal of a complete withdrawal from the Bulgarian market. The decision was confirmed by the company's Supervisory Board in July 2025, following a thorough evaluation of Arco Vara's long-term strategy and the current and future development opportunities across different markets. The management has already launched the sale process, and several local Bulgarian real estate developers have expressed interest in participating in the transaction. Potential buyers will have the opportunity to conduct thorough due diligence and submit their offers to acquire Arco Vara's Bulgarian operations. According to Kristina Mustonen, Member of the Management Board of Arco Vara, this is a well-considered and forward-looking decision. 'Exiting Bulgaria allows us to focus even more clearly on our core market – Estonia. Our major project in the Luther Quarter, one of the most attractive development areas in Tallinn, requires strong leadership, focused attention, and financing capacity. By freeing up resources from Bulgaria, we will be better positioned to realise the growth potential of our Estonian projects and strengthen our position in the domestic market,' commented Mustonen. 'This decision was not made lightly – we have achieved significant results in Bulgaria, built a strong team, and delivered high-quality developments we can be proud of. However, from the perspective of Arco Vara's long-term growth and shareholder value, it is strategically justified to concentrate our focus on Estonia, where the potential of our projects is greater today than ever before,' explained Kert Keskpaik, Chairman of the Supervisory Board of Arco Vara AS. The company will keep shareholders and the public informed about the progress of the exit process and will provide further updates as transactions or other material developments reach the next stage. Darja BolshakovaCFOArco Vara in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
11-07-2025
- Business
- Entrepreneur
Before Selling Your Business, Ask Your Buyer These 5 Questions
Before you sign the dotted line, ask the questions that reveal who your buyer really is — and what they truly value. Opinions expressed by Entrepreneur contributors are their own. When it comes to selling your business, the numbers matter — but the fit matters more. Founders can get caught up on the valuation, deal structure and closing timelines. But the real success of an exit isn't just measured in dollars; it's measured in legacy, continuity and the future of what you've built. A recent study found that 58% of small business owners prioritize business continuity and safeguarding the business's values over financial considerations. That's why choosing the right buyer is as much about alignment as it is about economics. Whether you're selling to a private equity firm, a strategic acquirer or a next-generation operator, here are five essential questions every founder should ask to help ensure the buyer is the right fit. 1. "What's your vision for the business post-acquisition?" This question cuts to the heart of alignment. You've spent years — maybe decades — building your company. You want to know that the buyer sees its value not just in spreadsheets, but in its people, culture and potential. A good buyer will have a clear, thoughtful answer. They'll talk about growth strategies, operational improvements and how they plan to build on your foundation. A great buyer will also ask you what your vision is — and how they can honor it. Red flag: If the buyer is vague, overly focused on cost-cutting or seems to have a "flip it fast" mentality, walk away. Related: I Wish I Knew These Things Before Selling My Company 2. "How do you work with founders and leadership teams during and after the transition?" Every buyer has a different approach to post-acquisition integration. Some want the founder to stay on for a transition period. Others prefer a clean break. Some bring in their own operators; others empower existing teams. Understanding their style is critical. If you're planning to stay involved, you'll want to know how decisions will be made, how much autonomy you'll retain, and what support you'll receive. If you're stepping away, you'll want to help ensure your team is set up for success. Pro tip: Ask for examples of past acquisitions. How did those transitions go? What worked — and what didn't? Can you speak to previous owners who sold to them? If so, ask them how the process went, if they were happy with the outcome and if there's anything they would have done differently. 3. "What's your track record with businesses like mine?" Experience matters. A buyer who understands your industry, customer base and business model will be better equipped to grow what you've built. They'll also be more likely to appreciate the nuances that make your company unique. Pro tip: Ask about their portfolio. Have they acquired similar businesses before? What were the outcomes? How long did they hold those companies? What kind of support did they provide? 4. "How do you define success for this acquisition?" This question reveals the buyer's priorities — and whether they align with yours. Are they focused on short-term EBITDA growth or long-term brand equity? Do they care about employee retention, customer satisfaction or community impact? Are they looking to integrate your business into a larger platform or keep it independent? There's no right or wrong answer — but there is a right answer for you. If their definition of success doesn't match your values, it's worth reconsidering the deal. Be wary if they try to change the deal at the last moment. One of our clients recently walked away from a deal with a PE firm that attempted to adjust the deal because sales figures dropped while the owner was entrenched in the sale. Bonus tip: Ask how they measure success in their other investments. The metrics they track will tell you a lot about what they truly value. 5. "What's your plan if things don't go as expected?" Every deal can look great on paper. But what happens when the market shifts, a key employee leaves or growth slows? These situations can test a buyer's resilience and integrity. What is their plan B (or C)? Are they committed to the business for the long haul? How do they handle adversity? Their answers will give you insight into their communication style. Are they transparent? Collaborative? Will they keep you, or your team, in the loop when challenges arise? Green flag: A buyer who acknowledges risk and speaks openly about how they manage it. Related: Selling Your Business? Do These 6 Things Right Now. Final thoughts: It's not just a sale — it's a partnership Selling your business is one of the most important decisions you'll ever make. It's not just a financial transaction; it's a transition of leadership, culture and vision. Consider all the options, including passing down to your children or other family members. The right buyer will respect what you've built, invest in its future and align with your values. The wrong buyer can unravel years of hard work in a matter of months. To help ensure you're finding the best successor for your business, it's important to ask difficult questions and listen closely to the answers. Identify the buyer that aligns with your goals and will preserve the integrity of your business. Remember, the best deals aren't just about price, but should factor in purpose, people and the path forward. If you aren't sure where to start, consider talking to a Certified Exit Planning Advisor (CEPA®) who can help you evaluate your options and forge a path forward. Join top CEOs, founders and operators at the Level Up conference to unlock strategies for scaling your business, boosting revenue and building sustainable success.
