Navigating a successful business exit while keeping growth on track is one of the toughest challenges any founder can face. Jonathan Summers, executive chair of Twisted Loop, looks back at his journey and how three key things helped drive a successful outcome.
Every entrepreneur embarks on their business journey with a vision of success. But what does success truly look like?
Is it scaling to new heights, running a solid lifestyle business, becoming an industry leader, or crafting an enterprise that is ultimately acquired for a premium?
When I co-founded my previous business, Mudano – a full stack data company serving financial service clients – we had a clear vision: build something innovative, create real impact based on client outcomes and drive systemic business change through technology.
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There was no exit strategy, we were in it for the long haul.
So, when an approach came, it’s fair to say I was under-prepared for the emotional rollercoaster of simultaneously scaling a business while preparing for an acquisition.
Growing the company was exhilarating. Seeing our solutions drive transformation for clients, hiring the brightest minds, and fostering a high-performance culture was deeply fulfilling.
But, as any founder knows, it wasn’t all smooth sailing. There were sleepless nights, strategic pivots, and moments of doubt.
Balancing growth while ensuring we were operationally robust was tough. Five years in, we knew we needed to take investment to scale the AI products we were building. The consultancy revenues were high, but sometimes unpredictable.
Navigating the investment (and subsequent trade sale) process was a challenge in itself – information memorandums, pitches, due diligence, negotiation strategies and daily decisions took their toll. And all whilst simultaneously keeping the business running at full speed. It required all our focus as a leadership team.
Three key things drove the ultimately successful outcome.
We split the management in half – I led on maintaining business momentum and my partner led on the transaction. Each of us with a small, dedicated team of leaders who knew exactly what was happening.
It worked well because we put the emphasis on over-communication all of the time. Nothing was left unsaid or went without discussion and neither team left for the evening until we had full alignment and understanding.
Underpinning all of this was a detailed day-by-day plan that allowed us to prioritise activity between leading the transaction content, securing new business and keeping team morale high.
For those considering an exit, my advice is to start preparing early. Maintain impeccable business records, push the brand building hard, establish enduring client relationships, and ensure your leadership team can sustain the business beyond your involvement.
Know your valuation drivers. Understanding what drives value in the industries in which you operate can help shape decisions early on. Is it recurring revenue?
Proprietary technology? Brand equity? Aligning your strategy with these value drivers enhances your business’s desirability.
Also, surround yourself with advisors who have been through it before – without them we would not have made it through.
The moment the deal closes is surreal. Relief, exhaustion, excitement mixed with a touch of sadness. Letting go of something you’ve built is never easy, but knowing it’s in good hands and that you’re exiting on your own terms makes it all worthwhile.
These days, I’m back at it again – helping other ambitious leaders and investors grow with confidence through our consultancy twisted loop, combining everything we learned with a fresh, AI-oriented approach.
Good luck. If we can make it through the madness, so can you.
