Preparing Your Business For Exit

In our recent roundtable discussion, we gathered a group of CEOs and founders to share insights on what considerations leadership teams need to take into account when preparing their business for exit, and the market conditions acting as barometers for the right time to start scaling the organisation. The conversation was led by Parry Malm, founder of Phrasee - a company he founded, led and successfully exited. 

Shifting from founder to CEO mindset 

As the macroeconomic climate becomes increasingly uncertain, founders must become more resilient to change than ever as they look to scale the business. The transition from founder to CEO represents a pivotal shift demanding keen foresight and empathetic leadership approaches.

Beyond the initial vision needed to kickstart a company into operation, the founder must cultivate a CEO mindset, characterised by a broader perspective and a focus on sustainable growth. With this evolution comes a recalibration of priorities, from the hands-on generation of revenue to the orchestration of teams, systems, and strategies that drive long-term success. Embracing this transformation requires a willingness to delegate, to empower talent, and to foster a culture of innovation and resilience.

Finding the right potential buyer

Beyond financial considerations, the ideal exit partner aligns with the vision, values, and growth trajectory of the portfolio company, ensuring a seamless transition and maximising value creation. This partnership goes beyond mere capital infusion; it encompasses shared goals, complementary expertise, and a mutual commitment to unlocking potential. Whether it's an IPO, strategic sale, or secondary buyout, the process demands meticulous due diligence and a discerning eye for cultural fit and strategic alignment.

Many founders agree that a standardised procedure would simplify the process of interpreting multiple complex, confusing investment offers.

Exploring other exit options

At a time when big ticket acquisition deals are becoming fewer and further between, exploring alternative exit options has become an essential strategy for founders looking to grow their business to the next stage of maturity. While traditional methods like IPOs have long been the go-to avenues, today's dynamic market offers a number of innovative exit strategies.

From recapitalisations and management buyouts to minority investments and special purpose acquisition companies (SPACs), there are a diverse range of less conventional options to successfully scale a business. Embracing these alternative paths requires a keen understanding of market trends, regulatory landscapes, and investor appetite.

What to expect when arranging an exit

Negotiating sales and exits can leave founders in a state of flux. Often, navigating such substantial change to the business can impact perceptions of your personal circumstances and finances. Strong networks, both professional and personal, can help founders to take into account the wider impact of scaling the business.

Surround yourself with the right advisors early on to ensure you are adopting a balanced and fair approach to business transformation and its ramifications for your existing employees and clients.

Finding the right team to negotiate a successful exit

Key to mitigating stress and negotiating the most profitable exit is having the right advisory network in place. At Odgers Berndtson, our international firmwide network enables us to connect you with sector leaders with deep industry expertise. We are uniquely positioned to help you locate and appoint the best talent at any stage of the exit process.

Special thanks to Ella Hauser, Senior Researcher in our Global Technology & IT Services Practice. 

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Get in touch. Follow the links below to discover more, or contact our dedicated leadership experts from your local Odgers Berndtson office here.