Avoiding Mid-Market Exit Mistakes: Lessons from the Trenches

Welcome back to another edition of The Wise Exit!

In today's issue, we're covering:

• Avoiding Mid-Market Exit Mistakes: Lessons from the Trenches.

• M&A Fees: What You Need to Know (so you don't overpay).

• Why Location Matters More Than You Think in M&A.

Let's dive in!

Avoiding Mid-Market Exit Mistakes: Lessons from the Trenches

We've been through the mid-market exit process and learned a thing or two. Here are the biggest mistakes and how to avoid them:

1. Don't Rush Into It

The Problem:

Jumping into an exit without proper planning is asking for trouble.

The Solution:

• Start planning 2-3 years in advance.

• Get your financials in order.

• Make your operations as efficient as possible.

2. Be Realistic About Your Value

The Problem:

Thinking your company is worth more than it really is can kill a deal fast.

The Solution:

• Get a professional valuation.

• Look at market trends and similar sales.

• Be ready to explain why your company is worth what you're asking.

3. Do Your Own Homework

The Problem:

Overlooking issues that could derail the sale.

The Solution:

• Do your own due diligence before anyone else does.

• Fix any problems you find.

• Keep your records organized and easy to access.

4. Keep Everyone in the Loop

The Problem:

Not telling key people what's going on during the process.

The Solution:

• Have a clear plan for communicating.

• Regularly update investors, employees, and advisors.

• Be open about how the company is doing and any challenges.

5. Don't Forget About Taxes

The Problem:

Not thinking about how taxes could eat into your profits.

The Solution:

• Talk to tax experts early on.

• Set up the deal to pay as little in taxes as possible.

• Think about how taxes will affect both the company and shareholders.

Selling your business is all about being prepared and thinking ahead. If you can avoid these common mistakes, you'll be much better positioned to get the exit you deserve.

Featured Blog 📰

Ever wondered about the ins and outs of M&A fees? Our latest blog post has got you covered.

We dive into:

• Different types of M&A fees.

• Factors that influence fee structures.

• Common mistakes to avoid when dealing with fees.

• Strategies to optimize your M&A costs.

Plus, we answer some burning questions about tax deductibility and alternatives to traditional fee models.

Check out "M&A Fees - What Is It, Benefits, and Strategies Included" on our blog.

M&A Tips from Brian Dukes 💡

Location. Location. Location.

(no, not real estate)

I'm talking about M&A because your business's geography can make or break your valuation.

I've witnessed it first-hand. Here's why "where you are" matters as much as "what you do".

Read the full post on LinkedIn.

That's all for this week!

Keep learning, stay prepared, and don't hesitate to ask for help. Until next time.

Best, Brian Dukes