Developing an exit strategy is one of the most important steps you can take when it is time to sell your pharmacy or digital health business. It’s not just about setting a date that you will leave the business for good – although that is part of it. It’s about getting all elements of the business ready for a new owner: the staff, the suppliers, the customers, everything. A well executed exit strategy can also help you to increase the value of the business, improving your financial compensation, and can also ensure that the business continues on after you step down and you finally sell your business.
Finding a buyer
If you have a preferred buyer in mind – family, friends, a competitor, or your employees for example, then you can skip this step. In these cases, however, you might have to anticipate a delayed payment, or payment in installments. If this does not suit you, i.e., you want full compensation up front and no further contact with the business, then you will need to rethink your buyer and potentially enter the open market.
Timing is key
Of course, the buyer will have an effect on your timing. Selling on the open market will typically mean a much quicker timeframe than waiting for your preferred buyer to reach the full amount, in which case you will inevitably still be linked in some way to the business for a longer period.
Remove yourself from the equation
One of the biggest mistakes many small business owners in particular make, is becoming essential to every process. If this is the case, then the business simply cannot continue without you in position, and so the value is massively decreased. Start to remove yourself more and more from the business without damaging operations or productivity – delegate everything you can, and make sure that those you delegate to are well trained and competent.
What is it worth?
You can’t expect to get a fair price for your business if you don’t know what it is worth. Try not to fall into the trap of using a simple equation based on your recent turnover – you need a professionally conducted business valuation by an expert, who can take into account recent comparable business sales, your finances, your growth potential, and your assets to come up with a figure.
Leverage external expertise
Pinnacle Pharmacy Group only deals with mergers and acquisitions activity for pharmacy and digital health businesses. This means that we can keep fully up to date on the changing regulations, stay ahead of evolving market dynamics and provide the best possible mergers and acquisitions advice to our clients. Whether you want a professional valuation, help with finding and pre-qualifying a buyer, or you want us to handle the whole process from start to finish, we can help you to build your business exit strategy.