Exit Execution
Once a strategy has been put in place to maximize shareholder value, then it’s time to begin executing on that exit plan. ValleyBiggs approaches a client’s exit in a highly customized, focused way, specific to the client, it’s shareholders, it’s employees, the industry and the client’s post-acquisition needs. In today’s market, successfully selling or recapitalizing a business can come in a number of different forms. Shareholders in middle-market companies need more than bankers, brokers or consultants to get the value they want from their business. Being strategically and operationally prepared can make the difference between a successful company sale and not getting a deal done at all.
ValleyBiggs has a unique mix of experience, talent, skills and tools to help clients execute on an exit strategy via the timelines, benchmarks and requirements set forth by the client. We’re not just bankers, brokers or consultants. We have a team of professionals that have specific experience in the buying, selling and startup of middle market companies. This specific, operational experience is key when combining the network of professional that ValleyBiggs partners with on every deal, including deal makers, attorneys, due diligence experts, forensic accountants, auditors, tax specialists, funding groups (including banks, private equity, investors and venture) and those that can assist with post-acquisition operations transition.
Because of this, our teams are led by senior executives that can view your business from both sides of the table: as an operator (because we’ve been there growing and selling our own companies) and from the capital markets perspective. …then roll-up our sleeves to support your team in proactively preparing and executing on your plans.
It’s also important that owners understand that there are a number of methods to exit a business. Here’s a list of a few:
- Merger
- Divesture
- Sale to a strategic buyer or private equity group
- Asset or Stock sale of the entire company
- Management buyout
- Minority shareholder buyout
- Recapitalization
Each of these exit opportunities are discussed when developing an exit strategy and one or more exit opportunities become the end goal when it comes to the exit execution stage.
Sales Process
The industry and client objectives play a big role in determining the exit process, but if transaction will be a target acquisition by another person or entity, then we will perform the following activities:
Understand the Business and the Client
- Review shareholder needs and requirements
- Review Trailing Twelve Months and Previous 2 Years Financial Performance
- Determine buyer profiles
- Hold Shareholder and Key Employee meetings to gather information and obtain and deep understanding of the company and its operations
Prepare the Business for Sale
- Strategize with Shareholders on Exit Timing
- Make operational and financial improvements to best position the company for sale
- Create Pitch Deck, Executive Summary, Prospectus and other vital documents
- Prepare financials for presentation
- Set up Data Room
Market the Business
- Develop a list of potential buyers or investors
- Set up funding and lending so that when a suitor is found, the team can execute
- Finalize documents and data room to facilitate meetings
- Reach out to potential buyers and initiate meetings
- Obtain term sheets and begin negotiations
Closing Process
- Review all term sheets and determine the best suitor
- Execute Definitive Agreement between client and suitor
- Due diligence process
- Choose transactional law firm for closing
- Finalize all closing documents and prepare for closing date
- Close and/or execute transition plan
