Sell your business with our best business exit strategy: "Retire and Retain the Upside"…
How would you like to take some cash off the table from your business -a big large chunk, and step back from the day to day running of your business and never worry about the funding of the business (raise capital) ever again AND still share in the upside as the business is grown by some of Australia's smartest and best funded business advisors?
Sound too good to be true?
Well, it not and this is a business exit strategy we highly recommend you consider, especially if you don't need to sell your business immediately. It will ideally suit those of you who are happy to have some form of ongoing involvement and ownership of your business.
We call it our "RETIRE AND RETAIN" method of business exit strategy! How to retire from the day to day running of your business and still retain some of the profits and business improvement benefits (the upside!).
This is a business exit strategy that we highly recommend which is setting your business up for sale to a private equity group.
Who are these Private Equity firms and Why Do they have so much money to spend on acquiring businesses?
You have most likely heard of Private Equity (PE) firms in the financial press. The ones reported in the financial press are typically doing big business sales, $300 Million, $600 Million, or buying up entire airlines! Some examples of the bigger PE firms here in Australia include Investec, Champ Private Equity, Advent Private Capital, NBC Capital etc.
Private Equity firms raise capital through fund raisings. The money they raise can come from a range of investors: high net worths, industry funds, super funds, money markets etc. It is important to understand that there is a lot of cash out there (even after the Global Financial Crisis) looking for higher returns than just sitting in a bank. The objective is to get a high return on the money raised by investing into businesses. Most private equity funds specialise in certain kinds of industries and certain size businesses.
The big opportunity here is that Private Equity firms are cashed up and desperate for deals – they need to spend their millions of cash and this is great news for those of you that want to sell your business.
If your business ticks their "buying a business checklist" then these cashed up Private Equity firms are going to be very keen to speak with you!
Some take home points to consider about Private Equity firms…
- Remember, that besides being well funded, PE firms often have great connections, business improvement capabilities and new business ideas to take your business way beyond what you could ever take it by yourself.
- You are selling your business or taking on investors/part owners with people who have a vested interest in making sure the continued business improvement and growth of your business is HUGELY successful.
- You will have some of Australia's smartest people/investors backing your company and driving it with highly profitable new business ideas.
Whatever industry it is you're in, there's probably Private Equity firms out there who are interested in what you have. When it comes time to sell your business we highly recommend you seek them out and find out their "buying a business checklist" and whether your business could be a candidate for them to acquire. You may be surprised at the attractive deal you can strike with them and how well selling to a private equity firm can work for you as a business exit strategy.