What are 7 painful Truths IL earned from Our $25 ME xit talks?
Why is it important to perform exit optimization from day one?
The problem with failed purchases is that they’re similar to embarrassing high school pictures that you wish you never saw on social media. Unlike the photos, these lessons are worth sharing
I bring you 2019 with me. We were enjoying strong growth, solid profits, and what we perceived as a “flawless business model”. Subsequently, the offer was made for an acquisition. It was exhilarating. Who among entrepreneurs doesn’t want a big exit? We had always thought about selling, but our enthusiasm for the business waned. Even though this opportunity arrived earlier than anticipated, we still felt ecstatic, appreciative, and overflowing with excitement. Being from humble beginnings, the prospect of life-changing money was euphoric. We jumped into the situation without any understanding of the lessons we were going to learn
The LOI was signed, but nothing happened immediately
We were not genuinely optimized for exit. What’s the reason for this?. The phrase “I know, I know” is a common expression used in boardrooms. We have lost millions due to this mistake, and you may also be affected
The Profit Paradox
Being profitable was not the only thing that needed to be done initially. We made some money, but not in a way that was considered impressive. Your profits are not enough to make buyers feel weak. They demand premiums, not provide them, which is why they charge them. There is a reason for it: the more profitable you are, the greater leverage you have. If you’re highly profitable, buyers are aware that you can choose carefully. If the profitability is only satisfactory, negotiating from a weak position can be likened to preparing for savage and expecting to win