Great #Linkedin share By Dan Cremons
Want To Maximize Your Exit Multiple?
Minimize enterprise risks that could weigh on an otherwise full multiple.
Here are 8 enterprise risks that are sure to eat away at your exit multiple:
🔴 Customer concentration (can create revenue risk)
🔴 Market risk (can also create revenue risk)
🔴 Legal, regulatory, and compliance risk
🔴 Cyber risk (can create legal, reputational, and business continuity risk)
🔴 Shoddy systems (can create operational risk)
🔴 Business complexity (can create execution risk)
🔴 Complex tax structures (can create financial risk)
🔴 Single points of failure (can create key person risk)
Identify the enterprise risks in your biz early in the hold period, and ask yourself:
“What needs to happen between now and exit to de-risk the business and ensure these things don’t sabotage an attractive, value-maximizing exit?”
Now is not the time to stick your head in the sand or look at your business through rose-colored glasses.
Be critical of your business today and take action on the risks and gaps. You’ll be rewarded generously at exit.
Check Dan Cremons new book Winning Moves
Sebastian Amieva
Mergers And Acquisitions Newsletter™ Founder
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