What an exciting Olympics that was. In a true test of the human spirit, we saw a range of emotions, including anticipation, excitement, happiness, relief, surprise, and misery, as well as disappointment.
But what does all this have to do with selling your business? As it turns out, quite a bit.
Chances are, you’re not a world-class athlete. However, the lessons learned by watching the Olympics can translate into a successful business exit.
Hard work does not guarantee success
For every athlete who makes it to the podium, thousands more had the same dream and put in years of hard work, only to fall short.
Most business owners work hard for years and yet don’t achieve their dream of a lucrative exit. Those who have the most successful exits are the ones who built a sustainable, profitable business with great transferable value and prepared themselves to maximize their return on effort when it’s time to exit.
Crossing the finish line is what matters
If you watched Noah Lyles win the men’s 100 m gold, you may have noticed that it seemed like the Jamaican, Kishane Thompson’s foot crossed the finish line first. However, what I and many others missed is that the rules state the winner is the person whose torso crosses the finish line first.
Business owners who have sacrificed a lot to get their business to a high revenue level are sometimes surprised to find that someone they know with lower revenue sold for a much higher valuation than them. When a significant portion of your net worth is tied up in your business, what matters is the overall valuation of your business, not just the revenue.
Know the rules of the game
Sports are made fair by having everyone play by the same rules. The rules are well-known and yet people foul regularly. In business sales, one could consider the “rules” to be: maintain excellent financials, build a team that reduces the dependence on the owner, implement good sales/marketing and operational systems, etc. These are the things that most buyers value, and they are well-known in the marketplace. Yet, many business owners commit a foul by not paying enough attention to better prepare the business for a sale before going to market.
Preparation is key
The Olympics come around every four years. You can bet that athletes who aspire to compete in LA in 2028 are training starting now. They know that success depends on a variety of factors, including having a strategy, a tactical training plan, and mental and physical preparation. They also know that it takes a team effort, and world-class performance requires a world-class team.
Just as an athlete needs strong coaches, teammates, sparring partners, assistants, medical staff, etc., a business owner needs a team with an M&A Advisor, tax and legal consultants, a financial planner, and others as needed.
If you are considering an exit now or in the next few years, don’t wait to begin preparing for a successful outcome. Start by contacting us to find out what your business is worth!
