How To Build A High-Value Company You Can Exit

In the video above, I talk about a topic that’s close to my heart: building a high-value company primed for a successful exit. Did you know that more than 80% of businesses never sell? That’s why I’m passionate about helping entrepreneurs design their businesses with an exit strategy in mind from day one.

Let me break down the key points I covered for maximizing your company’s value.

To achieve an Eight-Figure Exit, you will probably have to grow your revenues and profits (unless you are at around $2 million in EBITDA already). However, one big factor affecting your exit multiple has less to do with profits and more to do with the predictability, scalability, and perceived risk of your company. Below, I share five (of around 15 points) that you should take into account when you design your business and prepare for possibly the biggest financial event of your lifetime. Reach out to me if you want help, I can provide a valuation and give you ideas for what you need to do specifically in your business.

Here are five important ideas to consider, and implement to maximize the value of your future exit:

1. Get Off the Org Chart
You need to reduce owner dependency. Create a business that can run smoothly without your constant involvement. This not only increases transferability but also reduces risk for potential buyers. No one wants to buy a business that is dependent on the owner, if that owner is leaving.

2. Build Systems and Standardize

Implement robust systems and processes. This makes your business easily transferable, which is especially crucial if you’re in a service-based industry (but applies to all businesses). You can only transfer capabilities that are well-documented and teachable. Don’t sit on knowledge, build processes, systems, and SOP’s.

3. Diversify Your Client Base
Don’t put all your eggs in one basket. A diverse client base reduces risk and makes your business more attractive to buyers. As a rule, don’t make any client worth more than 10-15% of your revenues and profits. You don’t want to be the company that is literally one phone call away from disaster. Build a well-diversified client base that can handle some turbulence. You would probably not invest all your money into one, two, or three stocks, and your future buyer would not want to do that with your business ether.

4. Establish Recurring Revenue Streams
Think subscriptions or retainer models. Predictable, ongoing revenue significantly boosts your company’s valuation. Not all businesses can build subscriptions or recurring-revenue products, but all businesses can build reoccurring revenue streams. Get creative and find a way, your exit multiple will grow significantly if you do.

5. Develop Professional Management
Build a strong leadership team that can run the show without you. This makes your company much more appealing to potential buyers. No one wants to buy a business that is dependent on the owners who are leaving. They also don’t want to buy a problem, they want to buy an asset that someone knows how to manage and grow. And you’d probably love that too, wouldn’t you?

Here’s the thing: these strategies are beneficial whether you’re planning to sell or just want to step back from day-to-day operations. My advice? Start implementing these changes at least 2-3 years before you even think about exiting. Why not start right now?

Remember, building a high-value, exit-ready company isn’t just about pumping up revenues and profits. It’s about creating a scalable, transferable business that thrives even when you’re not at the helm.

Want to learn more? Check out my “Eight-Figure Exit” program. It’s designed to help businesses like yours prepare for exits above $10 million. Let’s build something truly valuable together.

To get started, book a call with me HERE and let’s assess your business and I’ll give you some good advice. Then, if we both feel like it, my team and I might be able to help you build your 8-figure exit. But, what would you do with the money? Let’s make that your next problem 🙂

Tobias