It’s estimated that there are around 9 million Baby Boomer business owners. Each of them will eventually be exiting their business. For the large percentage of those owner-operators who define a “successful” exit as getting top dollar for their business, how do they actually realize that goal?
Potential buyers look at a number of indicators when searching for a business, in order to get the assurance that their investment is a good one - especially in an industry that has a large field of competitors in the same market.
So, what about you and your business? What differentiates you from your competitors in the same market? What do you have that your competitors don’t have, that makes you attractive to potential buyers now or in the future?
Having attractive EBITA is important and a good start, but this may not be enough to secure top dollar. For most potential buyers, there has to be more substance to your business to make it stand out from others. Buyers want to see the overall value of your business and whether it’s sustainable after you leave. This is especially true when they need to rely on the existing leadership team. So how do you stand out from other potential buyout targets? How do you build value in your company now?
The answer is simple, and easier to achieve than you may think. You achieve it by implementing a proven and practical operating system, one that incrementally strengthens your business in every aspect of your organization. EOS®, the Entrepreneurial Operating System, does exactly that for your business. When faithfully implemented and sustained by the leadership team, operational excellence is obtained and is self-sustaining. Healthy year-after-year growth is achieved.
EOS® addresses an organization’s key aspects, called The Six Key Components™. They are Vision, People, Data, Issues, Process, and Traction. Combined with the EOS time-tested tools, guiding principles, and disciplines, this EOS Model™ becomes the means of achieving operational excellence. EOS is used by thousands of businesses to obtain better control, better balance, better focus, more company-wide excitement, and more profitability.
When a potential buyer of your company clearly sees these things in your business, you have excellent leverage and are in a better position to have a successful exit after taking all the other steps in your exit plan. To learn more, contact us at ENNIS Legacy Partners today.
Invest 12-15 minutes in the FREE ExitMap® Assessment and get a 12-page report scoring you in four key exit planning areas: Finance, Planning, Revenue/Profit, and Operations. ———————————————————————
Robert "Bo" Lotinsky has decades of combined leadership, management and results-oriented experience in a variety of sectors including manufacturing, non-profits, telecommunications, publishing, internet start-ups, and construction. Bo developed a passion for operational excellence in his first job with FMC Corporation’s Material Handling Division. Bo transitioned into start-up and mid-sized organizations for the excitement and challenge of seeing them grow more quickly and successfully.