WP-5 Managing an Exit for Best Value
While not all turnarounds make it successfully past WP-3 & WP-4 most mid-sized business owners will exit at some stage. Planning and managing the exit process will significantly increase value to all stakeholders.
In some cases managing a quick end to disastrous losses is prudent. This may take you down the insolvency path, but if you can manage the process, then business value to all stakeholders will be maximised. You may well retain sufficient key assets to rebuild again.
Other businesses will never quite attain an acceptable return on investment. So management may decide to sell the business as a going concern and enable the management team to produce an acceptable return on the funds invested.
If the business profits are going north, it may be positioned as a highly valued takeover target.
As turnaround manager we play a key role in identifying prospective purchasers, targeting, managing the information disclosure process, and negotiating a successful sale of the business at a price that maximizes return to stakeholders.
Bottom line... a performing business offers you better and more choices when delivering on your 'Ultimate Exit Goal'. We provide guidance for owners to maximise their value by implementing well thought out exit strategies.
The better the business performs the more choice you have. You may choose to run it as a 'Lifestyle Business', 'Sell it', 'Negotiate an Acquisition', 'go for an IPO' or 'Shut it down and Liquidate'. Read More Detail on Exit Planning
Whatever your preferred exit plan becomes, it will always guide the strategic plan we build for the business.
Identify the Viable Exit Options
If the exit is via a trade sales, merger or strategic acquisition then identification of potential targets is essential. Ideally we'll find more than one so to increase negotiating power and choice.
Restructuring the Capital
Too often a structure that works for mid-sized private or family businesses doesn't lend itself to some exit strategies, eg mergers or acquisitions. Capital restructuring may assist owners protect value and control.
Redefining the Business
Once the exit targets are identified then the business may be redefined to establish it as a superior merge or acquisition partner. This could involve some strategic marketing, R&D work on complementary products or services, geographic expansion or acquisition. The end game is to increase the perceived value of the business.
Negotiating the Deal
Negotiating a successful transaction can be stressful and uncertain. However by having the business well positioned in the buyers eyes increases it's value to them; and you. With seasoned negotiators on your team who know your business and the strategy that got it to the table should increase the business value.
WP-5 Outcome = Achieving your "Ultimate Exit" goal
It's a journey that may have taken your business from sinking to a
success. In the end you will measure the value created at WP-5 against
your 'Ultimate Goal'. Enjoy the ride.
Owners feeling... Relaxed. Elated. Reflecting on a journey.
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