Business Exits
You’ve worked hard to build your business. Now it's time to exit with confidence. We can help.
An exit plan is a strategic roadmap by which a business owner leaves a business. The most common ways for this are when a person retires, sells the company, or passes on to a successor.
There are several internal and external exit options to consider. Talking to an advisor and other professionals is essential to understand your options. Bankers, accountants, attorneys, and M&A advisors should be a part of your team.
An M&A advisor facilitates the process by assisting with legalities, due diligence, and financial steps necessary for a successful transaction. Working with iKadre, we guide you to secure your financial freedom.
Our process is simple. We will get to know you and your personal, financial, and business goals. We will ensure your business is ready to sell and offer suggestions on how to improve your standing through due diligence. We will then take your business to market, evaluate offers, and negotiate the sale.
The simple answer is now.
It's a good idea to start the exit planning process during the start-up business planning phase. But, really? We all have good intentions and sometimes that simply doesn’t happen. And that’s okay.
Exit planning depends on what you expect from your exit.
Succession. Retirement. Financial freedom. Starting a new company. Philanthropy.
Exit planning is crucial and can be a bit overwhelming. The many questions of whether the timing is right are never easy. Or maybe an expansion is better? Or maybe your kids really do want the business?
Our team will discuss the many options you have. We can help you evaluate your financial strength and the business trajectory. We can offer your business a fresh set of eyes to give your business a valuation that makes sense for you.
Family: A thoughtfully designed exit plan helps to minimize potential conflicts among family members. It limits unnecessary decision-making and tax burdens by handling these things for them.
Transition: A strategic exit plan ensures a seamless transition of ownership or leadership, preventing disruptions and maintaining business continuity.
Retirement: An exit plan helps secure your financial future (and freedom) by outlining the allocation of the business and proceeds.
Legacy: Building an exit plan ensures the preservation of your business's legacy and vision, guiding the new owners or leaders to maintain the company's core values and beliefs.-
Initial Public Offering (IPO): Publicizing the company by issuing stock exchange shares can provide shareholders substantial capital and liquidity.
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Strategic Acquisition: Selling the business to a larger company in the same industry, often for synergies, access to new markets, or technology.
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Management Buyout (MBO): The existing management team purchasing the business from the current owners can be an excellent way to ensure continuity and reward loyal employees.
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Family Succession: Handing over the business to family members, often the next generation, to maintain ownership and legacy.
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Private Equity Sale: Selling the business to a private equity firm, which can inject capital and expertise to grow the business further.
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Employee Stock Ownership Plan (ESOP): Transferring ownership to employees through a trust, allowing them to become partial or full owners over time.
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Liquidation: Selling off assets and closing the business is often chosen when other options are not viable or profitable.
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Licensing or Franchising: Transitioning to a licensing or franchise model, where others pay to use your business's brand, products, or services.
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Merger: Combining your business with another creates a larger entity that benefits from economies of scale and increased market power.
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Slow Down and Divest: Gradually reducing involvement in the business and selling off portions over time, allowing for a smoother transition out of ownership.
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While never fun to discuss, the five D’s of business ownership come into play frequently. It’s best to plan and prepare your business for unintended consequences.
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Divorce: According to Marriage.com, “Divorce lawyers estimate that the entrepreneur divorce rate is five or ten percent higher than the regular one. If we take that divorce rate in the USA is about 38%, that would mean that the entrepreneur divorce rate varies between 43% and 48%.”
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Disagreement: “Successful business partnerships usually start well. Close relationships, shared values, family ties, and positive work and personal experiences bring two or more individuals to want to go into business together. Yet the things that brought them together are inevitably met with the realities of operating a company. Business formation, financing, marketing, hiring and managing employees, purchasing, product design and distribution, and business development activities can be stressful and may raise red flags about the strength of the partnership." Mark Hamilton, President of Versa Culture LLC.
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Disability: Unfortunately, disabilities and illness are a part of life. Without proper plans in place, a sudden medical emergency could cause your business value to plummet.
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Distress: Contingency plans for when life happens. Property damages, work safety incidents, legal battles, critical employee loss, and many others need to be taken into consideration.
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Death: The death of an owner, a partner, or a key employee can substantially impact the value of the business if an exit plan is not properly defined and in place.
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Why Choose Us for Your Exit Planning Needs?
Expert Guidance: Our team of seasoned M&A professionals leverages years of industry experience to guide you through every stage of the exit planning process. We identify the best opportunities and mitigate risks to ensure a smooth transition.
Tailored Strategies: Your business is unique, and so are our exit strategies. We work closely with you to understand your objectives, evaluate your business's value and market positioning, and develop a personalized plan that maximizes your return.
Global Network: With connections across various industries and regions, we offer a broad spectrum of possibilities. Our established relationships with investors, buyers, and other stakeholders help facilitate optimal deal-making.
Confidentiality and Integrity: Your trust is our priority. We maintain the utmost confidentiality in handling sensitive information, conducting all transactions with integrity and transparency.
Thorough Market Analysis
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In-Depth Valuation Expertise
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Crafting Confidential Information Memorandum (CIM)
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Strategic Target List Development
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Strategic Marketing Blueprint
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Rigorous Confidentiality Measures
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Thorough Offer Assessment
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Expert Buyer Evaluation
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Efficient Due Diligence Support
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Facilitated On-Site Meetings
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Effective Negotiation Strategy
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Seamless Culmination