Most business owners are so busy running their day to day operations, they never think about stopping, much less retirement. But that day will come, and you’ll need to decide how to fund that retirement, or vacation home or boat. The more experienced, successful business owners will create a goal and start planning early.
It’s easy to hit the goal if you’re running a lower middle market firm, including a boutique and many others. You can raise sufficient income by selling your business to lower middle market private equity firms.
You’ll need an exit strategy to reach your income target.
What Is the Purpose of an Exit Strategy?
An exit strategy is when the business founders or investors transfer their start-up company to a third-party. It allows the entrepreneur a return on the large sums of money they poured into the business.
Who Needs an Exit Strategy?
If you’re looking for venture capital funding or angel investment, an exit strategy is the best option for your business.
You’re also thinking about how you’ll transfer ownership in the future, and so planning is the smartest thing to do.
What Are the Signs You Need an Exit Strategy?
1. A Shift in Your Entrepreneurial Mindset
When you started your business, you were full of verve and willing to take the bull by the horns. You focused on stability and profitability. But over the years, a lot of things have snapped.
The desire to keep growing has fizzled out and you’re now risk-averse. When you think of borrowing money to fund your business expansion, you develop goosebumps.
As other businesses adapt to technological disruptions, you see no reason to step in line to make upgrades. Replacing unproductive employees is now an uphill task.
You’re experiencing the tell-tale signs of a shift in your mindset; it’s time for an exit strategy.
2. Your Company No Longer Needs a Hands-On Approach
Over time, you managed to create a seamless and productive management team. Now your team can manage the business without your direct input.
You can leave the company in the hands of your able leadership and serve it as a coach.
3. Nearing Retirement Age
The time to say goodbye to years of hard work, commitment, and dedication has come. You now want to enjoy the fruit of your labor by getting liquidity to live a comfortable life.
Another reason could be that your business is taking its toll on your health. So, it’s the right time to engage lower middle market private equity firms to consider buying your business.
4. Lack of Economic Freedom
At first, you injected your personal savings into your dream business and maybe left the security of a salary. You thought that your business would bring about economic freedom.
But things aren’t happening according to plan. In this situation, you need an external investor to rescue you and give you a new lease on life. Lower middle market private equity firms can help.
5. Wide Gaps
As an ambitious entrepreneur, you’ve got great goals for your business and want to take them to the next level. You’re hamstrung by a lack of necessary skills and resources.
You can bring in a private equity firm to reignite and resource the business.
The Bottom Line
Lower middle market private equity firms can inject some capital into your business, giving you a good return on investment. To learn more, please contact us today.