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Business Exit Solutions
There are many options available in the consideration of
an exit: a company can be sold to an existing or new management team, to another local or international company, to individual or groups of investors, or through a combination of all three options. The right exit strategy can yield maximum return on the investment of time, effort and capital expended in the creation of a successful company. The wrong strategy can deprive the entrepreneur from reaping deserved value.
In considering an exit strategy, SMEs and entrepreneurs need a sounding board that is impartial in the consideration of facts and that is removed from the emotion and attachments associated with "letting go" of a company to realize maximum profit.
Structuring for Exits
Exits require hard analysis of financial structures, market conditions and the general investment climate to put forward a strategy and action plan that makes an enterprise attractive to insiders and outsiders. Often, to maximize the value of an enterprise, certain short-term investments need to be made to round out a position in the market, consolidate infrastructure and streamline operating processes. Investments in these activities prior to exit can yield multiples of return value in the actual transaction.
LG10 assists entrepreneurs and SMEs by providing a suite of services that serve to outline the right exit strategy and the appropriate financial mechanics and investment recommendations to maximize value:
- Researching and Selecting the appropriate exit strategy and processes required to yield maximum return.
- Writing a Prospectus to properly translate the opportunity into a form that is clearly understood and actionable by investors.
- Setting an Initial Valuation as a starting point to explore asking price and examine the steps and short-term investments required to boost the final price.
- Creating and Executing a short-term financial investment plan, inclusive of process, operations and infrastructure streamlining.
- Identifying Candidates through a process of long and short listing potential buyers and investors. If there already are clear candidates, this step is critical in obtaining a favorable negotiating position and to secure a proper valuation.
- Relationship Acquisition to establish the client within the relevant Mergers and Acquisition and investment communities through preferred introductions and entree to decision makers.
- Administrative Management of the opportunity once it is ready for circulation in the financial community with respect to issues such as due diligence, and certification of company data.
- Coaching and Representing the client through the negotiation and closure.
All financial, structural and operational solutions and strategies supporting an exit bid are corroborated by recognized third parties in the execution phase.
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