Exit Planning

Private equity firms that are approximately one year away from exiting an existing business (“T-1”) are interested in three issues:

1. Which potential buyers or class of buyers might be willing to pay a premium price for this company and what would they find most attractive about the company?
2. How can we shape this business during our last year of ownership to optimize EBITDA and make the business most attractive to these potential buyers?
3. What is the “growth story” for this business? Where is the growth runway for the next owner, how big are the markets, what is the company’s competitive advantage, and what early steps can be taken in the final year of ownership to demonstrate the viability of these future growth paths?
The growth story needs to be supported by a fact base and market insights to stand the scrutiny of the buyer’s due diligence. These facts and insights include market research, market sizing, economic analysis, competitive analysis, value proposition analysis relative to competitors, company capability analysis, and other factors. Some companies already have a growth story and need only to validate/ fortify it with facts. Other companies lacking a growth story need to develop a growth strategy and implementation plan.

Exit Planning

We help the CEO and the leadership team understand the facts behind the growth story and prepare them to share it with potential buyers: in the Pitch Book, in the verbal presentations, and in discussions about the business with potential acquirers.