By: admin_72347 | 5 min read
September 15, 2022
4 Reasons Why Business Owners Should Build Valuation & Exit Plan
Here are 4 key reasons why business owners should build a valuation and exit plan in 2025:
- Strong seller’s market expected: 2025 is projected to be an ideal time for selling businesses, especially in the lower-middle market (revenues $5M-$100M). Private equity firms have $2.5 trillion in dry powder, and there’s increasing consumer and business confidence, creating favorable conditions for sellers1.
- Maximizes business value: Having an exit plan demonstrates to potential buyers that you’ve committed to business goals and objectives, putting your company in the best position for sale. It highlights that you’ve worked for a seamless transition, increasing the perceived value of your business2.
- Provides strategic direction: An exit strategy allows businesses to visualize future goals, plans, and asset management. It offers a focused trajectory towards long-term growth and helps owners stay on track with business objectives4.
- Enables quick action on opportunities: With a prepared exit strategy, businesses can capitalize on potential market opportunities without wasting time organizing their affairs. This allows them to quickly take advantage of chances to sell at maximum value4.
By developing a valuation and exit plan in 2025, business owners can position themselves to benefit from favorable market conditions, maximize their company’s value, maintain strategic focus, and be ready to act on lucrative opportunities.
