Strategic Exit-Planning for ICT SMEs

February 7, 2012 Tech_Guy Featured, 0

For successful small-to-medium sized enterprise founders in the Information Technology and Communications industry, the moment often arrives when the decision is to either pull back from the business with a solid passive income to rely on , or to exit from the business entirely and realise their investment in full .

If pulling back or retiring from an operational role is the what you have in mind , your business must arrive at the point where it can truly stand without you being in control in an operational sense - and not just surviving without you , but going really well and growing . This means that the business must be running optimally on all levels , and key personnel must take on all of your various responsibilities with maximum effectiveness .

In the case of the latter choice, the sale of the business, the years preceding the moment chosen for the divestment of the business are tantamount to maximising the return on investment via the sale . This is where the professional expertise of an experienced consultant in ICT mergers and acquisitions can have a huge impact on the final outcome achieved . The first question usually asked is: “How do I value my ICT company’s worth in the market?”

Do I need a professional or can I bring this about by myself?

You could be quite shocked at the degree of benefit which can be gained by talking to a professional in ICT M&A – and the earlier in the planning towards achieving your objectives the better . Overall, the eventual trade sale price can be increased by 50% on the strength of proper documention alone, and a further 100% more return through maximisation of your firm operationally and strategically in plenty of time before presenting the opportunity of acquiring your firm to suitably qualified buyers in the market for acquisitions in the ICT industry .

A professional strategic assessment of your business should take into consideration at least six vital facets .

How do I conduct an assessment of my ICT firm?

At a minimum, the areas for full examination and analysis would include:

strategic direction
the ins-and-outs of control
human resources
business processes
the company’s equipment and technology , and
information .

This is not just to arrive at a global overview of the organisation , however. To bring about the effect of viable changes within an appropriate time frame , this kind of in-depth assessment must be applied across the fundamental bases of the business :

strategic management
the continuing development of new product and services
how products and services are delivered
marketing and new business development

The requirement is no different if you are to extract yourself and keep the enterprise as a source of ‘passive income’ while you concentrate on doing different things with your worklife , or enjoy an early retirement .

A strategic approach to your ICT company exit planning can ensure that the value you have accrued in your ICT firm will return in abundance .