Build an Exit Strategy Mindset Today with Mac Lackey, ExitDNA

Build an Exit Strategy Mindset Today with Mac Lackey, ExitDNA

April 29, 2021

It doesn’t matter whether you are going to sell your company or not; having an exit strategy in place can help to minimize potential losses. Mac Lackey talks about the shifts the entrepreneur needs to make to build an exit strategy mindset. These changes will gradually prepare your business to withstand various obstacles in the market.

About Mac Lackey: 

Mac Lackey has been an entrepreneur since 1995, starting and selling his 6 businesses all beyond 7 or 8 figures. Nowadays his program ExitDNA offers entrepreneurs and founders all the necessary information concerning what to undertake to be prepared for successful selling.

What is a business exit strategy?

A business exit strategy is a well-thought-out plan to help a business owner in moving out of their business while optimizing financial returns and ensuring a seamless process. It is critical to outline the processes and steps to be done to exit the business while preserving its value. Having an exit strategy in place is vital because it allows entrepreneurs to plan for future possibilities such as selling the business, transferring ownership, or liquidating assets. By identifying the exit plan early on, entrepreneurs may connect their operational decisions, growth objectives, and financial goals with the anticipated exit outcome.

Business owners have several exit strategies, including selling the company to a buyer or investor, going public via an initial public offering (IPO), succession planning to transfer ownership to the next generation or a chosen successor, or liquidating the company if it is no longer viable. An effective exit strategy requires meticulous planning and preparation. Business owners must examine market conditions, industry trends, and their company’s financial success. Owners can position themselves for an advantageous exit when the time comes by laying a solid foundation, focusing on profitability, and increasing the value of the business.

Professional advice from experts such as business brokers, attorneys, accountants, and financial consultants is critical in successfully implementing an exit strategy. These professionals provide significant expertise in transaction structuring, deal negotiation, due diligence, and navigating legal and regulatory requirements. An effective exit strategy also assures continuity and legacy by taking into account the long-term effects on employees, customers, and stakeholders. It seeks to provide a smooth transition of operations while also protecting the company’s reputation and worth. Entrepreneurs can prepare themselves for a smooth transition and capture the value they have produced in their business.

Episode highlights:

  • Mac reckons that curiosity is a powerful feature that enables you to see the trends earlier, ask various questions concerning the environment that your business is surrounded by, and learn more. You will inevitably think deeper about various questions due to the reaction to different changes.  [05:20]
  • To fulfill your ambitions and reach your goals, your model of behavior should change from reactive to proactive. You need to take little steps at the early stages and, therefore, be thoughtful of your future outcome. Mac Lackey states such an approach will prepare you for anything that might happen on the market. [07:59]
  • In order to sell, you will have to find your strategic value. You need to think of what things that you create are really powerful and unique. The reason your company can be bought is that you create the demand in the market for it, and you can attract customers to your company.  [12:59]
  • One of the questions you need to answer is what your motivation to raise capital is. Mac Lackey recommends deciding on your if and when criteria to sell with your founders. As a rule, there is a trigger event that makes entrepreneurs sell their companies. [22:40]
  • One of the key points of the business journey is that the earlier you exit the business the easier it is. Mac Lackey noticed that in the early stages the profit from selling that company at times might be higher, however, as the business grows more variables appear to be considered and you are in less control of the situation. [28:10]

Mac Lackey’s advice for entrepreneurs:

“The biggest critical shift you have to make, no matter if you ever want to sell a company or not, is the options. One of the ways to create the options is to decide immediately that you are going to be proactive about it and once you make that mental shift those things will start to happen.”

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