Top tips: How
I exited my business

Top tips: How
I exited my business

Exiting a business isn’t easy and for lots of business owners that exit may not happen in the way they’d planned out.

Whether that’s down to market conditions, a change in stance by the board or a complete change of heart from the business owner themselves, there’s lots that can impact on exit plans and exit points.

We asked Lucy Hackshaw, founder of Seen Displays, for her top tips on how she exited a company that she grew from a start-up to a 20-person design studio that worked with some of the biggest brands in the UK, including Nike, John Lewis and Selfridges.

My timeline to exit

Total time:

c.12 months

Planning:

Six months focusing on the transition, exit and what I wanted to do next

Shareholder negotiations:

Three months

Notice:

I spent the last three months working out the remainder of my six-month notice period

1. Start with why

Focus on why you want to exit and why now. It’s an uncomfortable process so staying close to why you’re exiting is vitally important.

2. Build an exit team before you trigger anything

An exit team can provide valuable support. Appreciate that it’s a complex process and identify what support you need.

I used an accountant for valuation, a corporate adviser for strategic support, a business coach and a lawyer during my exit.

Lucy Hackshaw’s exit team and their roles

Accountant

Support in the business’ valuation

Corporate adviser

Strategic support for the negotiation process

Executive coach

Sounding board for exit and transition planning

Lawyer

Legal support

3. Develop your successor

Even before you trigger your exit, develop your successor and expose them to your role. This will help them feel confident about stepping up, and help you demonstrate to your buyer that you are not irreplaceable.

4. Have a number in mind

Know what your walk away number is and be realistic. I didn’t get what I wanted and had to take my ‘good’ rather than my ‘better’ or ‘best’ sale price.

5. Commit to your plan

Design several exit strategies, pick one and commit to it. This provides clarity when you’re going through a complex process.

6. Be prepared for emotional challenges and changes in relationships

You’ll be negotiating with former colleagues and board members, which can be difficult. As a founder it is, and will feel, personal but it’s important to remember your shareholders position is a business one.

7. Be conscious of your attachment to the business

Founders often put so much of themselves into their businesses. This can be great for organic growth; however, it can make detaching problematic for both you personally, and for the business.

Explore the detachment process with a coach.

8. Prepare for number negotiations

This is obviously a big part of the process. Imagine what the shareholders will say as a way to help you prepare for negotiations.

Lean on your exit team and particularly your accountant for support – think about taking them with you to negotiations.

9. Be discreet

If others within the business know that you’re considering an exit then it could serve to worry them and the more people that know, the greater the risk of the news being leaked to clients.

It’s obvious that this could be detrimental to your focus, the company reputation and ultimately your negotiation position.

10. Plan for your transition

Consider upskilling while you’re exiting. Directing your curiosity with learning helps to keep an open, responsive mind which you’ll need during such an uncertain time.

11. Reward yourself

When you strike the deal, gift yourself something as a reminder of the journey you’ve been on, from founding to exiting the business.

12. Reconnect

Former colleagues, employees and clients are your work community, and may be quite close friends. You don’t have to disconnect for long. After a conscious break I started meeting back up with previous colleagues and clients just two months later.

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