20. How can you ensure your business thrives under new ownership while aligning with your vision?

Why Every Business Needs an Exit Strategy

No matter how passionate you are about building a company, there comes a time when you have to consider how you’ll eventually leave it. An exit strategy isn’t just about selling—it’s about making sure the business continues to thrive under new ownership. For the New Zealand entrepreneur this is one of the most difficult challenges. How to balance shareholder returns whilst ensuring other stakeholders are fairly treated.

But the exit strategy is also about clarity. Owners must agree on why they want to sell, or risk pulling in different directions once the process begins.

Options on the Table

In each of my five start-ups, three exit options were available:

• Management buyout or new investors – appealing in theory, but the company’s value has already outgrown what management could realistically afford.

• Merger or acquisition – a definite possibility, but one complicated by competitors, whose interest leaned toward a hostile takeover rather than partnership. The real goal is finding a buyer with a “good strategic fit,” someone who can keep building on your foundations.

• IPO (Initial Public Offering) – potentially lucrative, but costly and uncertain. The market doesn’t always share your view of what the company is worth, and once public, control shifts in unpredictable ways.

Why the Timing Matters

When the business is at a crossroads, the exit option has to be considered. One scenario is when sales are strong, your innovation pipeline is exciting—but growth requires significant new capital. The founding shareholders, many of whom have invested in the early years maybe ready to realize returns. Industry dynamics also play a role: the level of new entrants entering the market, margins maybe peaking, and valuations are unlikely to climb much higher. Timing of exit is critical.

Deciding on a Private Sale

There are risks with an IPO, or you can opt for a private sale. The advantage of the latter is control. In this option you can decide who to sell to, ensure the buyer is aligned with the company’s strategy and culture.

Whatever route the preparation is intense: financials, due diligence, and endless negotiations.

The Human Side of the Sale

For me managing, the sale can be bittersweet. On one hand, you are proud that the timing has been right—industry valuations are at their peak, and shareholders are rewarded for their faith. On the other hand, as a founder and CEO, you cannot ignore the personal dilemmas. You want to see the business continue on its existing path, supporting staff, suppliers, and global distributors. Yet, as a shareholder, you also have a duty to maximize value for those who had backed you from the start.

This dual role—leader and shareholder—is a difficult balancing act. It means making peace with the reality that the new owners often have different priorities.

Takeaway: Exiting a business isn’t just about money. It’s about timing, alignment, and clarity. Know why you’re selling, preparing thoroughly, and accepting trade-offs are inevitable. The goal isn’t just to exit—it’s to leave the business stronger than when you started.

Building Global Businesses

A fuller explanation on this subject is outlined in my book “Going Global” www.goglobal.co.nz