Everything hinges on how well defined and implemented your plan is.

Monday Momentum: Bravo Argentina, Bravo France. Both executed brilliantly on their world cup campaign plans. Argentina won on the day in one of the closest contested finals in my memory. Both teams were well prepared, and both played to their strengths.

In the end Argentina triumphed as the better penalty takers after a thrilling overtime. If we use the sports analogy and apply it to business, there are strong parallels.

Let’s talk about a Business Exit Plan: what makes for failure in securing a successful exit and what constitutes success? Just like in sport, everything hinges on how well defined and implemented your plan is.

Failure to create a comprehensive exit plan guarantees that owners will:

Exit as a result of outside pressure and not their own desire; be held to a timetable forced on them instead of one that meets their needs; face an undervaluation of their company leaving money on the table; pay too much in taxes; lose control over a complex process and not have multiple options; fail to realize personal and business goals; suffer psychological stress and distraction from running the business; suffer from poor business continuity planning; and lose confidentiality of the process.

In the current business environment, many owners are receiving unsolicited bids for their companies, and they are just not prepared to receive the maximum value they deserve.

If you have a good business do not be drawn into an unsolicited bid process without developing your exit plan.

Any successful exit requires advice from several different specialty vendors. Do you know who they are? Are they the best with experience in your industry sector? Do you know how to negotiate the best deal with these vendors?

Patience is your friend in this instance.

A well designed and then well executed exit plan will guarantee:

• That owners will control how and when they exit.
• They will maximize business exit value in good and bad times.
• They will minimize capital gains taxes.
• They will keep control by developing several options.
• They will make sure that the sale meets their personal and business goals.
• They will be less stressed as will their employees and families.
• The business will continue to operate well during and after the sale.

A recent PWC survey showed that the #1 reason a private business sale fails or only partially succeeds is lack of planning. 

I will leave you with this good news. You do not have to go it alone. There are many seasoned professionals out there willing to help you. Don’t let pride or fear prevent you from realizing the value you have worked so hard for.

Take a leaf out of the Argentinian and French World Cup Soccer playbooks. Plan to win and you will reap untold rewards.

Have a great week of momentum!