FT Start-Up Stories Episode 10 - How to exit your business
Dec 28, 2015
Paul Collins, CEO of M&A advisor Equiteq, shares valuable insights on exiting a business. He discusses the complexities and challenges founders face when considering a sale, including the emotional journey and support issues with advisors. Personal anecdotes illustrate the negotiation hurdles and restrictive deal clauses encountered. Collins also emphasizes the need for long-term planning, recognizing personal capabilities, and preparing successors, while reflecting on life after a successful exit and exploring new ventures post-retirement.
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Founder Realises Business Needs Rebuilding
- Paul Collins built a consulting firm, realised it lacked saleable value, and set a five-year plan to create equity.
- He focused on shifting from working in the business to working on it to make the firm sellable.
Build The Eight Levers Of Value
- Create clear value drivers buyers recognise, like proposition, client relationships and strong management.
- Structure a multi-year plan to build those levers before you attempt to sell.
Advisor Failure Forced Founder To Take Over Sale
- Collins' advisors performed poorly, so he rewrote the sale documentation and sourced the buyer himself.
- He felt the advisors earned little credit for the exit and the process was unpleasant.