If you’re not thinking about your exit from day one, you’re already behind the ball.
In the fast-paced world of private equity, you have to hit the ground running in a new CXO role. From day one, ensure you are taking a long view — consider who may acquire your business and why, so that you can structure your company in such a way that will optimize your position in the market and thereby garner buyer appetite. The exit is the overarching driver for everything you do throughout your hold period and every business decision must align accordingly.
A solid exit strategy will provide the framework for the company’s future trajectory and allows you to plan accordingly so that you may align your business to the end goal. Applying an exit-focused mindset and adopting preparation-oriented practices will help set you on a course to maximize success and minimize the risk of being blindsided amidst sudden changes to the business.
Preparing for the Exit: The CXO’s Pivotal Role
It is never too early to consider a company’s value proposition and how your day-to-day strategy drives that value. As a PE-backed CXO leading a sale, your number one goal is to maximize the company’s valuation. To do so, there are a number of best practices and areas of early focus that make a highly effective CXO — you must be able to communicate your company’s value proposition in the market and future growth potential, ensure you have the right management in place and provide the pertinent metrics.
The sale strategy is comprised of a thorough analysis and understanding of your company’s assets, market conditions, financial records, sales, and just about everything else. Positioning your company as an attractive value proposition also means thinking about details, like your ideal