Exit Planning (Part 3): M&A for Growth and Opportunity Beyond Retirement

green triangle
Exit Planning: Knowing When It’s Time to Sell Your Lower Middle Market Company (Part 3)


M&A for Growth and Opportunity Beyond Retirement

So, you’re not ready to hang up your hat just yet. Many entrepreneurs find the idea of selling their thriving business unappealing. But what if selling your company could fuel its growth and secure your future on your terms?

Unlocking Growth Potential:

Perhaps you have ambitious plans for your business but lack the capital or resources to take it to the next level. Here are some questions to consider:

  • Growth Aspirations: What are your long-term goals for the company? Does your current path achieve them?
  • Timing the Market: Is it worth the risk to wait? Waiting for the “perfect” market moment might mean missing out on a great opportunity.
  • Timeline for Work: How much longer do you envision yourself actively involved in the day-to-day operations.


Selling Now, Shaping Your Future:

A strategic M&A transaction can offer significant benefits even if you’re not ready to fully retire:

  • Market Advantages: Selling when the market is strong allows you to capitalize on peak business value. Don’t wait for a downturn to dictate your options.
  • Strategic Exit Planning: A well-structured M&A deal lets you plan your eventual departure on your terms, ensuring a smooth transition. Choosing the right acquirer allows you to determine your own level of involvement in day-to-day operations or as an advisor without completely retiring.
  • Unlocking Bigger Value: Selling to the right acquirer can fuel your company’s growth. This “second exit” down the line can yield an even greater return on your investment.


Proactive Approach to Success:

Many entrepreneurs wait too long to consider an M&A exit. This often happens in response to negative events like declining performance or personal challenges. It’s important to consider your options early so that you are never forced to make a reactive decision – don’t wait for economic or health changes to force your hand. A proactive approach allows you to make informed decisions based on opportunity.

By engaging with M&A advisors early, you gain control of your future. Align can help you explore all your options, including strategic partnerships that free you to focus on growth initiatives while building value for a bigger payday later.

In the next blog, we’ll discuss overcoming the fear of “letting go” of your business as a part of your identity and finding the right acquirer for your lower middle market company.