ABSTRACT
Common to most exit definitions is the idea of reward for earlier investment in the venture, the nature of these rewards being both financial and nonfinancial, and the distinction of an ownership and a management dimension throughout the exit process. Whereas the shareholding can in some cases be reduced rapidly, entrepreneurs are often linked to the future management of their businesses, primarily to ensure transition, integration, and the achievement of predefined milestones in the further development of the company. Below are the 10 crucial steps people should take to ensure that their business is ready for an exit, as described by Entrepreneur magazine. The steps are: get a business valuation, get books in order, understand the true profitability of business, consult financial advisor, and make a good first impression. Other steps are: organize legal paperwork, consider management succession, know the reason for selling, get an advisory team in place, and keep an eye on the target.
