The result of the GROW or GO survey designates that the owner and company are in Quadrant 4 and both the owner and the business is prepared for the owner to exit the business.
The owner could still decide not to exit, but at least the owner is most likely prepared to exit, should an exit plan be developed and executed.
If the goal is to sell to a third party, then considerable amount of work needs to be accomplished to present the company in the best possible light and to find the right acquisition partner at a fair price.
Questions and Answers on Quadrant 4
What About Growing The Company?
The company can still focus on growing revenues and profits, but more executive time should be allocated to preparing the company for sale to a third party or to related parties
What Advisors Should Be Consulted?
An owner should create their exit plan with advice from accounting, tax, legal, wealth management and exit planning experts.
Should I Use An M&A Expert?
Working with qualified mergers and acquisition specialists will likely accelerate the exit process timeline, help present the company for sale, and secure the best possible price and deal terms.
On What Should the Owner Focus?
If the owner is ready to proceed with an exit, the owner should make sure that an estate and financial plan are in place.
What About Minimizing Any Taxes That Might Be Due On Sale?
There are a variety of tax minimization or deferral strategies that could be implemented. It is recommended that this be done with the help of a tax or financial advisor.
How Long Should It Take For The Owner To Exit?
If a new owner has already been identified, then the ownership transfer process can be accomplished in 3 to 6 months. If the company needs to identify and reach out to find prospective buyers the timeframe will likely at least double.