7 essentials for successful Exit

Building a successful business takes a lot of hard work, dedication, and strategic planning.

For many Microsoft Partners, the ultimate goal is to build their company for Exit – either through a merger, acquisition, IPO, or a sale. With careful planning and execution, it can ultimately lead to a significant payday.

Here are 7 areas to focus on to get the best valuation:

1. Start with the end in mind

   To build your company for Exit, you need to have a clear understanding of your exit strategy and start working towards that goal from day one. You should have a solid understanding of what potential buyers or investors are looking for in a company, as well as what will drive the most value for your business.

2. Build a strong team

   One of the most important factors in building a successful business is having a strong team in place. This means hiring the right people, creating a positive company culture, and investing in employee development. A strong team can help you achieve your goals faster and more efficiently, and can also make your business more attractive to potential buyers. 

3. Focus on growth

   To build your company for exit, you need to focus on growth. This means setting clear growth targets and developing a strategic plan to achieve them. You should also be constantly looking for ways to innovate and differentiate your business, whether it's through new products, services, or markets.

4. Be prepared for due diligence

   When it comes time to sell your business, potential buyers will want to conduct due diligence to assess the value of your company. This means having all your financial and legal documents in order, as well as being able to demonstrate the value of your business to potential buyers. At Law 365 we've invested heavily in legal AI to transform the way this is handled in future. Our in-house AI team have created LawyerBot 365 which can already read and review NDAs. This year they are adding new functionality that will make due diligence considerably faster and more affordable.

5. Have a strong brand

   A strong brand can help make your business more attractive to potential buyers or investors. This means developing a clear brand identity, messaging, and marketing strategy that differentiates your business from competitors.

6. Manage cash flow

   Cash flow is crucial for any business, and it's especially important when building your company for exit. You need to have a solid understanding of your financials, including revenue, expenses, and cash flow, and have a plan in place to manage your finances effectively

7. Build strong relationships

   Building strong relationships with customers, partners, and investors is essential when building your company for exit. This means creating a positive customer experience, being transparent and open with investors, and collaborating with partners to drive growth and innovation.

At Law 365 we recommend bringing your legal advisors early – even 5 years before you plan to sell – to get you prepared for the best valuation.

We recently hosted a webinar interviewing two Microsoft Partners - Chris Hodgson and Paul Shannon, co-CEOs of OBT Advisory (and 10-year veterans of the Microsoft Partner giant, ANS) about their exit experience.  Watch our webinar.

Further reading

• 5 ways lawyers help with due diligence
• The IP Staircase
• 4 reasons to protect your IP