Cashing Out: A business owner’s guide to selling to private equity
Entrepreneurs live and breathe their business, setting the course and steering the ship towards growth and success, but in the midst of managing day-to-day operations entrepreneurs can neglect the bigger strategic picture, including options for exiting. For some, planning their exit can feel at odds with their current commitment to the success of their business, however investment options such as private equity (PE) have the power to unlock a new growth phase for business owners and their organisation.
Despite this potential, many entrepreneurs continue to find the PE world a daunting one. A trillion-dollar industry posing a variety of different options, understanding suitability, establishing a realistic valuation and navigating due diligence processes are unique challenges for founders. Alexis Sikorsky is determined to reduce the fears of entrepreneurs and increase the accessibility of PE exits. His new book Cashing Out is an easily-digestible, expert blueprint for scaling, team-building and attracting the investment to mastermind a profitable exit, demystifying a seemingly complex world for entrepreneurs wanting to supercharge their growth.
An entrepreneur since the age of 15, Alexis has distilled decades of on-the-ground, hands-on business expertise into a practical resource to navigate the world of PE as a founder. In fact, he has personally executed the process effectively, selling his company for an impressive nine-figure sum. He now guides other founders to do the same using many of the techniques in the book, firstly helping them to understand themselves, their business and their leadership style before embarking on his APEX methodology: Assessing your company, Planning your growth, Executing your plan and eXiting in the most profitable way. Practical throughout, Alexis has incorporated lessons from his own successes, challenges and mistakes alongside insights from fellow industry experts making the book the perfect guide for business owners navigating the PE process.
Cashing Out covers practically preparing and undertaking a PE exit, including understanding goals and vision, building teams, preparing accurate valuations, choosing the right funding options and how the exit process unfolds, as well as the mindset challenges entrepreneurs encounter throughout the exit process. Entrepreneurs can sometimes be resistant to the idea of exiting or giving away some control, especially when they have often had primary responsibility for setting the business’ course. Reassuringly, Alexis highlights how PE exits can bring alternative perspectives that push the business to new heights. He also discusses the importance of due diligence on both sides. PE firms will be questioning the business’ suitability and simultaneously business owners should be actively listening to the experiences of others who have followed the process with a particular firm to understand if it is right for them.
Alexis keenly dispels misconceptions that prevail about PE. Many entrepreneurs fear the process, worrying PE firms do not have the business’ or its people’s interests at heart. Counteracting this, Alexis covers how PE firms support founders through the process, as well as how they could do this more effectively. Similarly, many stories prevail in the media of entrepreneurs dramatically inflating their company valuations. Alexis zeroes in on the importance of realistic valuations and how companies can calculate and evaluate their current standing.
At the heart of demystifying the PE process is empowering entrepreneurs with transparent knowledge. Whilst PE might not be the right fit for every business, considering and preparing for the process as early as possible in the business journey is essential to being able to secure a high return. Cashing Out is the ideal read for any business owner who is considering a PE exit, is ready to look beyond their reality and wants to understand how they can set themselves and their business up for the most profitable exit possible.
