EXIT PLANNING: Financial Engineering Unsellable Owner-Dependent Enterprise to Sellable

Owners might be the best in running the enterprise, but they might not be the best in preparation for selling (as it might happen only once in their life time)

Typical Problems are:

• The enterprise is not operationally optimal without the owner(s)

• The enterprise has not yet been kept up with technologies

• Too dependent on sales of a few clients and a lack of balance and diversification of revenue

Therefore, as it is, the business/ enterprise’s valuation is not optimal

Solutions:

Each Exit Planning Strategy is specific to the enterprise, but in general we bring in our expertise to address the vulnerability and therefore reduce risk and enhance Valuation for optimal exit many years before exiting happens, which typically includes:

• Scalability

• Recurring Revenue

• Diversification: (i.e. Broad Customer bases)

• Strong Financials (including building M&A Muscles)

These are a few examples that if well taken care of, would enhance the enterprise selling Valuation and would appeal to a wide range of Strategic Acquirers/ Financial Buyers to pay top dollars

But for selling Owner(s) to enjoy this advantage, proper Exit Planning Strategy must be implemented many years before the actual exit