The liquidity phase of your journey could very well be the exit you’ve envisioned from the beginning—or perhaps it’s more about gearing up for a whole new phase of growth. Regardless of your plan, the preparation is essentially the same. Everything from solid accounting and compliance practices to building a three to five-year projection model to effectively pitching your financial story to potential buyers and investors.

Additionally, there’s a heavy focus on tax, forecasting and financial reporting during a liquidity event. In the case of an IPO, integration of ERP software is critical to achieve the proper controls. If you continued to build out these competencies from the start, you’ll be better equipped to navigate transaction requirements and maximize the opportunities that come your way. However, even the best planning can be thwarted by unfavorable market conditions. In this case, it may be best to press the pause button on a transaction and shift your focus on improving efficiencies and reducing costs.