Realizing shareholder value: Private company exit strategies

Download The exit strategy series

The perpetuation of ownership and the succession of management are among the most difficult challenges that a privately held business will ever encounter. The decisions surrounding these issues will determine what will become of the organization to which business owners have devoted their lives, and what will be the return on what is likely their most valuable financial asset.

Yet, ironically, these critical — and complex — decisions are among those for which the owner is least prepared, since they may be confronted only once in a lifetime. Owners may have many decades of experience at managing a business, but little or no experience with the monumental task surrounding his or her exit.

We have created this series, Realizing shareholder value: Private company exit strategies, to guide privately-held business owners in the development and execution of an effective exit strategy. Below is an overview of the series. Download the exit strategy series.

• Preparing for life after the deal discusses how to preserve and transfer the wealth generated from the exit of your business.
• The deal process discusses the process of getting from negotiation to closing and how to avoid pitfalls along the way.
• Preparing the business for sale suggests tactics to consider as well as mistakes to avoid in helping to prepare for the sale of a private business.
• Finding the right buyer focuses on looking at the business through the eyes of a potential buyer. Various deal alternatives, and the advantages and disadvantages of each, are discussed.
• Making the decision to sell explores the framework for developing an effective exit strategy — setting the appropriate objectives and understanding the importance of effective and early planning.