On a number of transactions, we offer auxiliary corporate finance services to our clients. We participate in creating the most adequate financing structure, arrange share/option-based management incentive systems, and we support our clients even in strategic questions linked to transactions and corporate finance (e.g. strategy making, planning and financial modelling linked to major investments).
Additionally, we support our clients in deciding if and when their company is ready to be sold and we help clients create an exit plan for themselves.
Exiting from a business should not be left for chances. The right planning allows the business owner to remain in control of the process and to focus the company on the most important, value enhancing strategies prior to the exit.
At Concorde MB Partners, we believe that all business owners should formulate an exit strategy, which may involve the issue of family succession, an MBO, or may simply be an outright sale to an external party.
The exit strategy documents are the following:
- Current value of the business and the key value drivers;
- Possible exit options;
- Market information including which types of buyers may be interested in buying the business and why (including details on recent transactions);
- Comments on what may be unattractive about the business today i.e. what may restrict the exit options and/or have a detrimental effect on exit values (allowing the owner time to put these things right before the exit);
- Strategies to increase profitability prior to transactions;
- Suggestions on how to address some of the issues identified during the analysis prior to the transaction.
Thinking about and developing an exit strategy can start at any time but it is rational to do it as soon as the first thought of the potential sale of the company arises. For MBO teams and their private equity partners formulating a credible exit strategy takes place before they invest their money. Even though an increasing number of entrepreneurs take advantage of early planning, for the majority of owner-managers exit planning is still left for too late. This results in missing the opportunity of maximizing the sale price of the company. Based on our experience, having 12-36 months prior to an exit, is sufficient time for an owner to fully prepare the business for sale by focusing on improving areas that are the key value drivers for a potential buyer.