Why Does Exit Planning Take So Long?

Exit planning consists of three essential steps: collecting data, quantifying your resources, and evaluating exit options. The duration of exit planning depends upon your business, its current value, and the desired value for selling it. If your business doesn’t have the value to be sold for your desired amount, the process takes longer because one […]

What Is Recapitalization?

During times of financial turbulence, a business may require restructuring. A company with a high debt-to-equity ratio may re-purchase its shares from the open market, increase its price, and improve its equity ratio. Companies trying to avoid hostile takeovers or wanting to derail acquisition often issue more debt to reduce their appeal to buyers. Companies […]

Due Diligence: Building a Diligence-Ready Company

Most business owners consider themselves to be the final authority on their companies. They believe they know everything there is to know about their companies, all the advantages, nuances, and peculiarities. However, they are in for a rude awakening when a buyer and their advisory team steps in to conduct their due diligence before finalizing […]

Completing Successful Due Diligence

If you are trying to sell your company and have selected the buyer, the following signs suggest things are moving ahead. The first is the letter of intent (LOI) between you and the buyer. Once it is clear that the sale of the business is going through, aware buyers will want to know as much […]

3 Simple Exit Planning Tips

Business owners have several exit options. They may choose to pass their businesses to children or successors, sell to a third party that an M&A team has identified for them, pass the company to employees or the management team, or close the business by liquidating all its assets. Whatever your choice of exit option, your […]