Tag Archives: ceo

CEO Exit Strategy Tips From One Of The Top 40 Under 40

Wind Mobile founder Anthony Lacavera has started 12
businesses, six of which he has exited. His exits have ranged in value from the
$6 million he got for one of his recent start-ups to $1.3 billion when he sold
Wind Mobile. He did it by following two key ceo exit strategy tips.

•           Understand
what kind of company you are running

Lacavera has owned hyper-growth unicorns and
lifestyle businesses and urges entrepreneurs to be clear about their long-term
prospects. Lacavera started a business supplying hotels with internet access
and understood the company would be a good cash generator, but would never sell
for a mint. He ran the business for almost two decades and used the cash it
generated to fund various other ventures. Recently, he finally sold the
business, which was generating $1.5 million in pre-tax profit, for $8 million—a
relatively modest 5 times earnings, which was fine by Lacavera, because it had
served its purpose of funding other companies along the way.

•           The
role of CEO and owner are not the same

Lacavera encourages entrepreneurs to separate the
role of CEO and business owner. Even though they may be the same person, they
have different functions and, at some point, your business may be better served
by separating the two roles. Entrepreneurs who are comfortable handing the
reins to a professional manager may do better in the long run than those who
need to control everything.

Lacavera had great success, which is visible in the
fact that he has won just about every business award there is, including 2010
CEO of the Year, Top 40 Under 40, Deloitte Technology Fast 50, and Canada’s
Fastest-Growing Company. One of the top secrets to Lacavera’s success — knowing
when to bring in a CEO to replace himself in any of his ventures.

For more information on the Value Growth Partners
CEO Exit Strategy, contact us today at (312) 525-8382 or visit our CEO Exit Strategy page.

Do You Want to Learn CEO Succession Planning Best Practices?

Did you know the ideal timeline for succession planning is 5 years? It is possible though for the unexpected to happen and if/when it does, a ceo succession planning best practices is to have a game plan i.e. a succession plan all lined up and ready to go to ensure continued success with your business.

Take a look at the CEO Succession Planning timeline here:

THE SUSTAINING PHASE

Begin this phase 2-3 years in advance. The executives are preparing to thrive under the new leadership; Right Mindset, Future Outlook, Organization’s Sustainability, Updated Strategic Plan, Executive Team Assessment, and Internal Team Candidates.

THE TRANSITIONING PHASE

Begin this phase 6-12 months before the leadership transition and consider overlapping with the Sustaining Phase. The organization embarks on the executive search process for the successors that may include board members, management team, and executives. Extensive work is done with transition planning.

THE ONBOARDING & SUPPORT PHASE

The heavy lifting is completed within the first 3-4 months of this phase but the hand-off process continues over a 6-12 month period. The board and senior management team access and adjust to the new leader’s management style and leadership role.

CONTINUED SUCCESS PHASE

The succession preparation and planning process should begin as early as possible. However, there are cases when you do not have the luxury of 4-5 years to plan. In these cases, it is best to have a contingent succession plan in place in the event that an emergency arises.

Value Growth Partners is here to assist with all of your succession planning needs. Request a 15-minute consultation with Value Growth Partners now to set up your CEO Succession Planning.