If you’re thinking about exiting a business now, or in the future, Professor Tom MacKaskill has these suggestions to maxmise the realised value, which he shared with participants at the 2008 Angel Summit.

• Valuation is all about future potential under the new owner, so 6-10x multipliers are not necessarily the maximum.
• You may not have to build the business completely before selling it.
• You may need 18 months to build a relationship with a potential buyer– educating him on synergies and potential.
• You must have competitive tension—meaning at least 5 potential buyers of your business.
• Ensure your business is scaleable before selling.
• Prepare the company for sale from the onset by introducing processes, governance etc.
• Earnouts almost always end in disputes. The only way to get good results is if key events are in the control of a third party.