Exit Strategy Options
S&P Capital works closely with our clients to determine what the best option is for each shareholder. There are several options in creating an effective exit strategy with no "one size fits all" solution in the area of mergers and acquisitions. Each transaction requires tailoring based on the needs of the company and its stakeholders. S&P will not only help in choosing the right plan; we will also increase value through confidential marketing and proper negotiations on the company's behalf.
Sale of the Business
- This fits best when an owner wants to truly exit from the business both operationally and financially.
- Potential acquirers would include strategic buyers or private investors.
- For owners who would like to diversity their wealth or know the business could thrive with additional growth capital or strategic synergism with other platform companies, it allows for them to continue operating the business while not remaining the sole financial owner.
- Potential acquirers would include financial buying groups such as private equity groups (PEGs) or venture capital groups.
- This can be done through the setup of an ESOP plan or through leveraged buy-out financing.
- This can be a very logical transition but very few companies are ideal candidates for this strategy.
- IPOs are perhaps the most publicized exit strategy but far from the most common. Very few companies will be large enough to justify the challenges and expense of going public. Mid-sized companies will generally not have access to these markets.
