October 2026 Newsletter
20 Reasons for Exit Planning and to Create an Exit Strategy
There are many different reasons why business owners choose to sell their businesses. There will come a time when selling your company might be the best decision you can make. Valuations are currently relatively high so this can be a tremendous opportunity for any CEO or business owner given a recession is long overdue, rising interest rates have hurt many companies and you want to sell when 1) The economy is healthy, 2) Your business is growing and sales are increasing, and 3) The CEO/business owner is healthy.
CEO Advisor, Inc. can help you to identify the optimal time to sell your business by discussing your situation, assessing your business, exit planning and creating an Exit Strategy, and fully preparing you and your company for a sale in order to maximize your value. Explore your options to sell as there are many different ways to achieve your business and personal goals.
Below are 20 reasons for Exit Planning and to create an Exit Strategy:
1. You Want to Retire. The majority of entrepreneurs plan to sell their businesses as an Exit Strategy to provide a comfortable retirement. Most business owners plan to sell their business rather than keep it in the family or hire someone to run it as their replacement when they retire as this is very risky. We work with many business owners and our advice is always the same – sell when you are relatively young and healthy (and the business and economy are healthy, as well). If you are in your mid to late 60s now is the time to contact a business / exit planning advisor like CEO Advisor, Inc. to discuss your options.
2. You've Achieved Long-Term Financial Security. One reason to sell your business is if you have achieved a certain level of financial security from running the business and you want to step back or sell and start a less stressful lifestyle. You don't need to fully retire to do this, as you can take on a temporary lesser role or a consulting role after an acquisition. There are also options such as a majority sale to a Private Equity firm, and CEO Advisor, Inc. has the contacts and expertise to advise you on this.
3. You Don't Have the Energy, Skills, or Capital to Grow the Business. One primary reason to sell a business is that you don't have the energy, time, experience, skills, and capital to take the business to the next level. A business should continually grow, and as business owners, there will come a time when you'll feel you can't generate adequate growth. This may be the right time to sell your business and entrust it to those who have the skills and resources to grow it to the next level.
4. You Experience Fatigue or Lack of Alignment. If you got into running a business for the wrong reasons or the market opportunity has changed dramatically, you will eventually experience a certain level of exhaustion that will no longer be healthy for you physically, emotionally, and mentally. If you think that there is no quick fix for the burnout you feel, and you don’t see a feasible and economical way to increase sales, profits and cash flow, then it's time to sell and realize the opportunity of today's relatively high valuations.
5. Your Business Has Substantial Sales Growth. One reason entrepreneurs choose to sell their business is that it has experienced substantial growth, but you realize the next leg of growth will be extremely expensive and take years. This growth is extremely appealing to buyers and you can gain a higher valuation from the sale. Some business owners just want to take a lump sum of money from the sale, and the best time to do this is when you can show substantial and consistent sales growth and earnings over two to three years.
6. Your Personal Interests Change. After years of running and growing your business, you may conclude it doesn't feel as interesting and exciting as when you started it, and you're losing your passion for your business. This is a sign that you should consider selling it. Over time, it's normal for your interests to change, and you should capitalize on a well planned Exit Strategy to sell while you are relatively youthful and have the passion to do something new.
7. You Receive an Offer Too Good to Turn Down. We always recommend to fully prepare for a sale, and to conduct a competitive sale process to many targeted prospective buyers. But if a qualified, legitimate buyer presents an offer you can't refuse, it can be ample reason to accept and sell your business. Such a strong single offer out of the blue is rare, but if an offer is priced well above the market value for your business it may be the right time to pursue it. Again, your optimal method to sell is to prepare for and initiate a competitive sale process to many potential buyers using a seasoned M&A advisory firm. But, you never know when a serious buyer is going to knock on your door so be prepared to sell at all times. CEO Advisor, Inc. can advise you on Exit Planning and an Exit Strategy and the needed preparation work in advance of a sale to maximize your value.
8. You Want to Have a Fresh Start. Entrepreneurs have other motivations to sell their business and one of these is the desire to start a new business. Some entrepreneurs go into business because they want to start and build something bold and take a risk. This is what drives their spirit. If a business has already reached a certain point of growth and stability, some entrepreneurs just want to move forward, sell the business to cash out on their hard work, and start something new and exciting. Although you typically need to plan on staying up to a year or so with the buyer for a smooth transition in order to get a deal done, performing Exit Planning and creating an Exit Strategy, and the preparation work now will get you to your goal sooner.
9. You Need More Time for Your Personal Life. At some point, as a business owner you will finally realize that running a business takes too much of your time. When the time comes that you will need more time for your family, to take care of your health and/or your personal life, then selling your business is a good way to do it. Be proactive and contact a Business / Exit Planning Advisor as the process of preparing for a sale and selling a company is not trivial so you want to start as soon as possible.
10. Your Overall Exit Strategy Is to Sell Your Business. There are business owners who invest in building a thriving business to eventually sell later on at an optimal time for a huge sum of money. If a well-planned Exit Strategy is your purpose for starting the business in the first place, then it's a great reason to sell the business as soon as you have reached your desired growth and Exit Strategy goals. Having an Exit Strategy is critical to every business, and CEO Advisor, Inc. can help you to discuss your options, formulate an Exit Strategy, prepare for the sale of your business, and enable the sale process at the proper time.
11. Your Business' Value Has Improved Significantly. If you have considered selling and your business is now growing substantially, it can be the optimal time to sell. Selling on the way up is important so don’t wait until you subsequently have a flat or down year. Running a business is risky, and the bigger you get, the larger the risks you have to face. The value of your business is not liquid until you go through the process of selling your company and realizing the life-long opportunity.
12. Your Business Doesn't Have the Capital to Grow or Survive Long-Term in a Highly Competitive Market. Private small and mid-size businesses are highly illiquid and risky assets. Without adequate capital, you can't realize the full potential of your business. If you need more liquidity contact a business advisor or an M&A advisory firm to accomplish your goal of selling your business. This can be more advantageous today given the high valuations.
13. You Feel Physically & Mentally Exhausted. As a CEO or business owner, you are most likely the hub of your business and make most of the major decisions. This can be physically and mentally draining, and the time will come when your responsibilities as a CEO or business owner will take its toll on you. If you feel physically and mentally exhausted running the business, then it's time for you to initiate an Exit Strategy and sale process. Don't wait until an illness or excessive fatigue sets in before you decide to sell, as the buyer will typically expect you to remain with the company for up to one to two years.
14. You Want to Take Advantage of Low Capital Gains Taxes. The tax rate on capital gains is at an historically low level. This is one good reason to sell your business and enjoy low tax rates if you can achieve a straight stock purchase. If you are at an age near retirement, or if you have already grown and stabilized your business, then it may be best to sell your business and take advantage of taxes at such relatively low levels. Remember, there is always the risk of much higher tax rates. Note that many privately-owned companies are acquired as Asset purchases so there is no assurance you can achieve a stock purchase with capital gains taxes. Contact your CPA firm for advice on Capital Gains taxes and your specific tax situation.
15. You've Become More Risk-Averse. Risk is essential to your business' continued growth. If you have become risk averse, and you get to the point that new opportunities invoke more fear than excitement, it is a sign that you should sell your business. Becoming too conservative means losing your drive to grow the business, and this alone is a good reason to sell.
16. Your Business Partner Wants to Sell. If your business partner wants to call it quits and move on, you have the option to either buy out his/her shares and own the business entirely, or just sell the business to a third-party. Most of the time, the second option is more prudent because you may not have the capital or want to borrow substantial funds to buyout your partner.
17. A Sudden Lifestyle Change Affects Your Business. CEOs and business owners need to understand that there should be a clear delineation between their personal lives and their business. If a sudden lifestyle change (like getting married, divorce, health issues, going back to school, or giving birth) becomes a conflict with your commitment to your business, then it's time to consider selling.
18. You Struggle with Poor Business Performance. Running a struggling business can be very stressful and demotivating. If you notice that your business' performance doesn't improve, even after you have exerted a lot of effort and invested many resources to grow the business, then perhaps it's time to consider selling it to someone who has the skills and money to revive and grow it. Just don't expect to secure an optimal sale price or terms.
19. Your Business' Industry Is Thriving or You See a Decline Looming. If your business' industry is thriving, it's a good time to sell your business. A business in a thriving industry will likely sell for more than if your business' industry is struggling. You can take this opportunity to sell your business while there are more acquirers interested in buying it at a good price. It's important to pay attention to industry trends, as it will benefit you when you decide to sell.
20. You Have Health Issues or You are in Your Late Sixties or Older (Possibly with Previous Health Issues). If you think your business has cost you your health, then it's time to seriously consider selling it. Facing serious health issues is one of the most common reasons why some CEOs and business owners choose to sell their business. After all, it's best to prioritize your health, and capitalize on today's lofty valuations. Most importantly, be prudent and don’t wait too long to sell. Selling when you are elderly or have health issues is extremely risky and can be far more difficult.
Bottom Line - When to Sell a Business. There will come a time when you will want or need to sell your company. The right time to sell a business is based on various reasons, such as economic conditions, industry trends, valuations, personal situations, and professional considerations, but most of all you want to sell when, 1) The economy is healthy, 2) Your business is healthy and sales are increasing, and 3) You, the CEO/business owner is healthy. CEO Advisor, Inc. provides complete Business / Growth Advisory, Exit Planning, Exit Strategy and Preparation for a Sale.
This is one of the most important decisions you may make in your life. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Disclaimer. This article is provided solely for educational and informational purposes. It is not intended for business or other types of advice. The views expressed by CEO Advisor, Inc. reflect general observations on various business issues.
Critical Sales Management Methods to Improve Performance
Sales growth is a critical factor in driving Net Profits and value in your business. Sales management plays a crucial role in the success (or failure) of your company. Effective sales management sets the tone, culture, goals and drives your business forward. With so much invested in your company and sales team, it may not be easy to take an objective assessment of your team.
You will benefit tremendously through improvements in your hiring process, goal setting, sales compensation plan, sales strategy and sales management methods to create a more productive sales team.
Below are critical methods that will benefit you by re-assessing your own sales team and how you manage them with objectivity and fresh eyes. CEO Advisor, Inc. has successfully implemented sales strategies and affected the needed changes in our clients for over twenty years.
Weekly Sales Meetings
Consistent weekly sales meetings are absolutely critical to a motivated, focused sales team. Focus on goals, your sales pipeline and sales training each week to maximize sales productivity. Utilize a sales Customer Relationship Management (CRM) software such as Salesforce.com and require daily use for all sales team members to plan, track and report on all sales activity and to optimize their efficiency and productivity. Review summary Pipeline and Sales Activity reporting from your CRM at weekly sales meetings to increase accountability and results.
Sales Management Training
Managers often emphasize to their employees the necessity for constant development and training. The same applies to you as the CEO, president or business owner and to your top sales executive. Consider hiring a professional business advisor to optimize sales management within your company to help you manage your sales team towards a more productive and profitable year.
Sales Goals
Sales goals should be annual, quarterly, monthly and weekly. Goals should include outbound calls, appointments, conference calls, opportunities, proposals, closed deals and other sales goals. Without the proper sales goals and tracking of these goals, your growth, sales, profits and the value of your business will suffer substantially.
Assessment and Growth
How do you set your sales team up to succeed? Assess and evaluate skills, and then train and set goals that are challenging but realistic and achievable. The more successes a salesperson achieves, the more likely they will strive for larger challenges and sales opportunities moving forward. Setting unrealistic goals may not allow for success with an environment in which the salesperson can grow and achieve results. Additionally, not tracking the goals of the sales team sends a message that accountability and results are not a priority and sales productivity will suffer.
Sales Leadership
Be a resource for your team. Share your own success stories, best practices, and advice on your areas of expertise, and provide direction to help your sales team in closing deals. Show your team that they can come to you with challenges and questions and expect to receive support and leadership. Role play in sales meetings as a critical training tool to provide added benefits, closing techniques and confidence to win more deals. Lead by example!
Address Issues Head-On
Don't allow negative morale to penetrate your sales team. When signs of negative morale or other issues become apparent, find out what is at the root of your employees' concerns, and then have an informative and open conversation with them about their concerns to come to an expedited resolution.
Trust
The primary role of any manager, especially sales management, is to provide leadership and guidance. The only way this will be effective is if you first build and maintain trust with your team. Then you can lead them to many great successes and achieve your sales goals.
Accountability
Create accountability in your sales team by ensuring that you follow up on directives, assignments, goals, requests and advice that you have passed down to them. Also, hold them accountable to their sales goals. By following up with them, you will also get a better understanding of the obstacles they are facing and be better able to advise them on how to overcome these issues. Lack of accountability by any sales team member should not be acceptable and addressed immediately.
Communicate Effectively
It's important for everyone on the team, not just management, to be aware of and understand the overall goals of the company. Be sure to communicate frequently to ensure everyone is on the same page and communicate your sales goals regularly. Ineffective or infrequent communications will cost you many customers and dollars!
Give Praise - Sales is a tough job!
Be sure to demonstrate your appreciation for your employees on a regular basis, even if it is in the form of a word of thanks for putting in extra hours, achieving your monthly goals or submitting reports timely. Sales team members should be highly respected at your company and praise given for success!
Contact CEO Advisor, Inc to help you with your sales management issues and to grow your business to the next level. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Disclaimer. This article is provided solely for educational and informational purposes. It is not intended for business or other types of advice. The views expressed by CEO Advisor, Inc. reflect general observations on various business issues.
You will benefit tremendously through improvements in your hiring process, goal setting, sales compensation plan, sales strategy and sales management methods to create a more productive sales team.
Below are critical methods that will benefit you by re-assessing your own sales team and how you manage them with objectivity and fresh eyes. CEO Advisor, Inc. has successfully implemented sales strategies and affected the needed changes in our clients for over twenty years.
Weekly Sales Meetings
Consistent weekly sales meetings are absolutely critical to a motivated, focused sales team. Focus on goals, your sales pipeline and sales training each week to maximize sales productivity. Utilize a sales Customer Relationship Management (CRM) software such as Salesforce.com and require daily use for all sales team members to plan, track and report on all sales activity and to optimize their efficiency and productivity. Review summary Pipeline and Sales Activity reporting from your CRM at weekly sales meetings to increase accountability and results.
Sales Management Training
Managers often emphasize to their employees the necessity for constant development and training. The same applies to you as the CEO, president or business owner and to your top sales executive. Consider hiring a professional business advisor to optimize sales management within your company to help you manage your sales team towards a more productive and profitable year.
Sales Goals
Sales goals should be annual, quarterly, monthly and weekly. Goals should include outbound calls, appointments, conference calls, opportunities, proposals, closed deals and other sales goals. Without the proper sales goals and tracking of these goals, your growth, sales, profits and the value of your business will suffer substantially.
Assessment and Growth
How do you set your sales team up to succeed? Assess and evaluate skills, and then train and set goals that are challenging but realistic and achievable. The more successes a salesperson achieves, the more likely they will strive for larger challenges and sales opportunities moving forward. Setting unrealistic goals may not allow for success with an environment in which the salesperson can grow and achieve results. Additionally, not tracking the goals of the sales team sends a message that accountability and results are not a priority and sales productivity will suffer.
Sales Leadership
Be a resource for your team. Share your own success stories, best practices, and advice on your areas of expertise, and provide direction to help your sales team in closing deals. Show your team that they can come to you with challenges and questions and expect to receive support and leadership. Role play in sales meetings as a critical training tool to provide added benefits, closing techniques and confidence to win more deals. Lead by example!
Address Issues Head-On
Don't allow negative morale to penetrate your sales team. When signs of negative morale or other issues become apparent, find out what is at the root of your employees' concerns, and then have an informative and open conversation with them about their concerns to come to an expedited resolution.
Trust
The primary role of any manager, especially sales management, is to provide leadership and guidance. The only way this will be effective is if you first build and maintain trust with your team. Then you can lead them to many great successes and achieve your sales goals.
Accountability
Create accountability in your sales team by ensuring that you follow up on directives, assignments, goals, requests and advice that you have passed down to them. Also, hold them accountable to their sales goals. By following up with them, you will also get a better understanding of the obstacles they are facing and be better able to advise them on how to overcome these issues. Lack of accountability by any sales team member should not be acceptable and addressed immediately.
Communicate Effectively
It's important for everyone on the team, not just management, to be aware of and understand the overall goals of the company. Be sure to communicate frequently to ensure everyone is on the same page and communicate your sales goals regularly. Ineffective or infrequent communications will cost you many customers and dollars!
Give Praise - Sales is a tough job!
Be sure to demonstrate your appreciation for your employees on a regular basis, even if it is in the form of a word of thanks for putting in extra hours, achieving your monthly goals or submitting reports timely. Sales team members should be highly respected at your company and praise given for success!
Contact CEO Advisor, Inc to help you with your sales management issues and to grow your business to the next level. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
Disclaimer. This article is provided solely for educational and informational purposes. It is not intended for business or other types of advice. The views expressed by CEO Advisor, Inc. reflect general observations on various business issues.
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