The importance of an exit strategy

• March 5, 2021
• 2 minutes
• The importance of an exit strategy

Being occupied with the strategy of your company does not only involve the process of strategy formation, implementation, re-evaluation and adjustment. As a DMS/shareholder, it is also important to think about how you are going to leave the company and realise maximum value for it.

A large number of entrepreneurs do not have an exit strategy yet. In practice, the sale of the company is being considered too late. When the time comes, we find that the company is not ready to be sold because:

• The company is too dependent on the DMS for its functioning and for important customers;
• Key employees do not (yet) have the right capabilities;
• Processes and systems do not yet function optimally and are insufficiently described;
• Turnover distribution is unbalanced and the dependence on a few large customers is too strong;
• There may still be opportunities for expansion that will significantly increase the value upon exit.

Formulating and implementing an exit strategy takes time. Polishing the company’s balance may still work to a certain extent in the negotiation phase, but in a due diligence investigation, the finger is quickly pointed at the weak spot.

Crossminds supports entrepreneurs in the formulation and implementation of the exit strategy and the realization of the exit itself. All the expertise under the same roof.

The process looks broadly as follows:

Such a process can easily take two to two and a half years. That is why we advise entrepreneurs to think about the process and start with this at an early stage.