Saleability assessment and exit strategy

Exiting businesses should not be seen as a game of chance. Planning allows the business owner to remain in control of any process, and focuses the business on the most important, value enhancing strategies prior to an exit.

At Magánbankár, we believe that all business owners – where an exit is likely at some point in the future – should formulate an Exit Strategy.
 
The Exit Strategy documents the following:
  • current value of the business and the key value drivers;

  • possible exit options available;

  • market information including which types of buyers may be interested in buying the business and why (including details of recent transactions); and

  • 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 (potentially allowing the owner time to put these things right before exit).

Establishing an Exit Strategy can start at any time, but the sooner the better.

For MBO teams and their private equity partners, formulating a credible Exit Strategy takes place before they invest their money. For most owner managers, exit planning is often left late, though increasingly, owner managers are becoming more aware of the benefits of early planning.

One key benefit of formulating an Exit Strategy 12-24 months prior to an exit, is the time it allows an owner to “groom” the business for sale by focusing on improving areas in the business that are key value drivers to a buyer.

If you would like to assess the opportunities to review your future exit strategies and the ways to groom Your business before the sale, please email Laszló Papp or call him at +361 202 1470.

office@mb-partners.eu