This is a golden era for entrepreneurs – never before has it been so easy to build such valuable companies, with so little capital, and sell them so early for so much money.

But we’re still not very good at being entrepreneurs. Too many companies fail because we’re still learning what works and what doesn’t.

For example, I believe that every company should have an Exit Strategy. Ideally from the founding, but certainly before starting to talk to investors.

Another part of the entrepreneurial process we don’t get right often enough is the exit. Every business owner will have an exit eventually – that’s just part of business and life. The scary part is that only 25% of saleable businesses successfully exit.

Yes, I am saying that after all of the hard work of starting, financing and growing a business, three quarters of owners blow it and fail to execute a successful exit.

This is my observation from being in this business for decades. The hard data doesn’t exist to prove that it’s 25% and not 15% or 35%. There is also some judgement in the terms ‘saleable’ and ‘successfully.’ But the certainty is that owners of businesses worth less than $100 million just aren’t very successful at getting their companies sold.

The biggest reason this happens is simply a lack of knowledge about M&A – especially what’s working in the current market. The M&A market is very different than it was just five or ten years ago. Many of the old rules just don’t apply anymore.

Another reason is the many myths, misperceptions and outright lies in the M&A industry. For example, many people still believe that if the CEO focusses on the business, then one day, when it’s time, magically someone will knock on the door to offer to buy the business. This actually does happen – but when it does, it’s almost never good news for the shareholders.

Good exits – the kind you want for your company - require strategy, planning and an excellent execution.

The first step in improving your probabilities of ultimate success is to learn as much as you can about what’s working for entrepreneurs today. This talk will get you started and suggest additional resources.

Basil Peters