An exit strategy is a key component of entrepreneurship, as it can provide a sense of safety and peace of mind.
Originally published in Business.com, April, 2025
FMG Leading Chairman and CEO Dr. Matt Brubaker was recently quoted in a Business.com article about why every business owner needs an exit strategy. The article, by Mark Fairlie, underscores the importance of having an exit strategy in-place as an entrepreneur, and highlights several recommendations and pitfalls to avoid.
The article outlines strategies for voluntary and involuntary exits, and highlights the differences between exiting as a startup vs. an established business.
Dr. Brubaker advised, “Get a good M&A attorney to represent you personally. Your firm, your PE firm and others in the deal will have perspectives that are adjacent but not identical to your needs. Take the time to learn the structures and waterfalls and get grounded in what you’re stepping into.”
The article goes on to talk about post-transaction realities. For example, after selling the business, previous owners may want to stay involved for a while to help smooth the transition. The new owners may welcome this involvement to better understand current systems and processes and decide what needs to be changed.
Brubaker emphasized the importance of being seen as the new owner’s most enthusiastic and vocal supporter. “Dogmatic assertions — and, even worse, sabotaging new owners by commiserating with your former team about how ‘out of touch’ they are — destroys value 100 percent of the time,” Brubaker warned. “Be part of the future — your earn-out depends on it!”
Most importantly, management teams should avoid any artificial or temporary inflation of EBITDA through gimmicky, short-term sprints in the name of cost conservation. “Leaders should continue to run their organizations as though they intend to run them forever with an eye on long-term, sustainable value creation,” Brubaker explained.
To read the full article in business.com, click here.
About FMG Leading
FMG Leading is a human capital advisory firm that partners with leaders and investors on a mission to make the healthcare system work, better. Its trusted advisors bring together management and key stakeholders to engage with critical people-centric levers that drive change and impact, helping address what’s broken and imagining different, better ways of enabling organizations to achieve their full potential.
