Exit Planning

All business owners and shareholders who are contemplating retiring and/or selling their business or transitioning it to the next generation within the next 5 years should be proactively planning for that exit NOW.  In order to receive the maximum price for the business, both the business and the owner(s) must be ready to sell and attractive to potential buyers.  Sophisticated buyers will significantly lower valuation multiples during due diligence if the owner(s) haven’t adequately de-risked the business and prepared it for maximum growth and profitability.  Similarly, if the owner(s) aren’t financially and personally prepared to exit, the buyer will learn that and will either devalue the business or walk away from the sale altogether.

Strategy Management is experienced and certified as a Certified Exit Planning Advisor (CEPA) to assist business owners, their shareholders and their management teams in maximizing the value of the business and ensuring that the owners of the business are personally and financially prepared to sell and obtain maximum value.  Strategy Management will “quarterback” a team of Legal, Accounting, Wealth Management, Insurance and other professionals to ensure success in increasing the value of the business and to make sure the owners are adequately prepared.  Depending on the state of the business and the owners’ timetable, the Exit Planning Process can take from 1 to 5 years.  This process includes:

  • The Triggering Event (generally 30-90 days):
    • An Initial Business Valuation
    • Business Attractiveness Assessment
    • Owner(s) Financial Readiness Assessment
    • Owner(s) Personal Readiness Assessment
    • Profit & Value Gaps versus Median and Best in Class Peers
    • Short-Term and Long-Term Goals & Objectives to Maximize Value
  • The Value Acceleration Process: (1 to 5 years)
    • Organizing and Implementing the Value Acceleration Team
    • Implementing the Goals & Objectives to Maximize Value, including;
      • Revenue and Profitability Improvements
      • Management and Systems Improvements
      • De-Risking Activities:
        • Business Continuity Planning
        • Adequate Insurance
        • Estate and Trust Planning
        • Tax Planning
      • Personal Wealth Management & Tax Planning
      • Gifting/Charitable Giving
  • Grow/Sell Decisions:
    • Acquiring Private Equity or Debt Capital to Grow
    • Accelerated Growth thru Acquisition or Joint Venture
    • Sale to a Strategic or Financial Buyer
    • Leveraged Buy Out (LBO) by Management
    • Sell to an ESOP

Strategy Management has the experience and expertise to assist you will all of the activities above, including the fact that we are licensed investment bankers and members of FINRA and SIPC.

Complimentary Initial Consultation

With 40+ years of experience at every stage of business, we know your challenges.

With C-Suite experience starting, funding, growing and successfully exiting businesses, we know how to solve them.