I have been thinking about this stuff for about seven months since we (myself and 3 partners) engaged in the LONG process to sell our portfolio of 12 Sola Salon Studio locations in Orange County.
Here are my 5 takeaways on building a business to maximize an exit sales price:
#1 Have an exit strategy in mind when buying.
#2 Build your team with an exit strategy in mind.
#3 Buy more territories to allow for growth and expansion.
#4 Open 3 locations ASAP to help future locations open easier and faster.
#5 Hire and empower key management positions sooner than later.
Here is some info on the sale from Franchising.com
Now, we did not do everything right, but together we sure did a lot right, and it’s not because of how smart I am (I do not like the be the “smartest” guy in the room).
I have intentionally put myself around people that have done 9 figure deals since I have wanted to do an 8 figure deal. I did not want to learn from someone who had done it 20 years ago, but rather from people who have recently done this.
I am glad I did since it reinforced that we were doing some of the things right in my 5 takeaways and other things we adjusted in recent years to have a business that could fetch a higher multiple if we sold.
It is also easier to run a business that is designed for the sale vs. built on the owner’s strengths and efforts.
PS – I am grateful to have learned a long time ago not to look at a business from the consumer’s view. If I had done that, then I would have never been in the “real estate business with salon professionals” I would have thought it was a “beauty salon” and would never have the opportunity to do what I have just done.
I had a little fun with this Facebook Live since Modern Salon reported on this.