Texas CEO Magazine March|April 2014 | Page 12

change management DEPT by George A. Walden II WHEN SOMEONE KNOCKS, WILL YOU BE READY? Why the Key to Exit Planning Is Budget Planning For effective CEOs in growing companies, being approached by the competition and financial groups for acquisition will happen – successful companies have the market beating a path to their doors. To be ready for the first knock, CEOs must prepare for the process by making exit planning a regular component of their annual budget and business development program. The first step in this process is to define what the exit objectives are. After all, it’s nearly impossible to get there without a definition of what a successful exit looks like. If the company is performing well and is approached but is unprepared, this usually means the advantage goes to the buying group and not to the seller. Waiting until the end of the process to consider the exit objective can lead to disastrous results. 12 Like all goal setting scenarios, starting with the end in mind is key. Who would think about starting a trip without knowing the destin ][ۏ