Exit / Divestment Planning Strategy
Exit / Divestment Planning Strategy:
Working with Document Boss, the M&A specialist in your sector, will provide you with a tailor-made review of your exit plan and will help you to identify planning initiatives to adequately prepare your business for a future sale. Specifically, you will be able to:
- Ascertain the exit options available to you
- Benefit from an informed third party sanity check of your exit goals and objectives
- Identify the best timing for your exit, based upon industry market information
- Gain insights on how best to articulate your value proposition to a wider international choice of buyers Create a step-by-step plan to maximise your valuation
- Set realistic timeframes
- Identify specific companies and sub-sectors where your share-holders will find the best return for their equity
- Discuss possible deal structure options that you may not have considered
- Clarify the steps involved prior to the commencement of the company sales process
- Establish a clear understanding of next best actions
The Exit Planning Review Process includes information gathering and a face-to-face confidential meeting to validate the viability of your exit plans, as follows:
- Completion of an information questionnaire on the business.
- A meeting with a senior executive from Document Boss who will be working with you throughout the process to complete the Exit Planning Review.
On completion of this work, the report will summarise the initial findings and clarify next actions. Once successfully completed, Document Boss will develop a formal plan, with input from the owners and management team, to identify a shortlist of planning initiatives and create a timetable for implementation.
As the exit strategy is developed, Document Boss will provide detailed input about what value you can bring to different categories of potential acquirers. Your direct competitors are unlikely to offer the most value as a buyer; their focus will be upon your customer base and sales organization and typically will down value the areas of your business where they over lap with their own.
Conversely, a company that operates in an adjacent market, may have more interest in your technology / services and the IP that is complementary to theirs, so that they can integrate your product / services with their own that will provide a step change for growth. The key objective is to be able to demonstrate the future value to the right choice of buyers by acquiring your business, not just your past record. The synergistic and added value aspects of your business can be calculated using whatever valuation methodology they use to enable them within shareholder and board restrictions to offer a higher multiple.
Trade sale processes can take longer than expected to complete because prospective acquirers are:
- Inundated with acquisition opportunities
- Focused on their internal operations
- Extremely selective, as the acquirer’s perception is often that it is a buyer’s market
Companies that try to predict M&A industry activity by following acquisition news releases, and industry gossip, is a bit like trying to play football by watching the game with a few seconds satellite delay. You need to be where the ball is about to be played and not where it has been.
Document Boss are constantly in communication with potential, qualified buyers who have specific interest in your sector. In addition, our “Outreach Team” and senior M&A project managers are all experts in this sector, with in-depth knowledge of the market drivers and trends, extensive senior executve level contacts and the ability to predict M&A market demands before they are publicised. As a consequence, if you work in partnership with Document Boss, you can be sure you are in sync with M&A trends for your sub-sector, making your exit planning, and specifically, the timing of your exit activities, easier to predict and facilitate.
The best time to start your exit planning is when you do not have to. Start the process on the upside, not the downside, of your business lifecyle. This will increase your chances of achieving the highest possible return for your shareholders.
To discuss your exit planning strategy click here