Corporate exit planning solutions for middle-market companies

Business Exit Planning

Entrepreneurs come in all shapes and sizes. Some are what we might refer to as those of a “serial” nature. They’re ready to sell at the drop of a hat. If the business hits a great sales peak and the cash-out can give them more flexibility to move on to other opportunities, they’re ready to jump ship at a moment’s notice. Others are much more methodical in their approach. They’d like to have the ability to build a legacy for other managers and their family in the business they’ve created. The process of selling a company can be very different depending on what type of entrepreneur you represent. For some, exiting is not the main goal, but performing strategic acquisitions or mergers for growth aligns much more holistically with the company’s overall strategy.

Regardless of what type of entrepreneur you are, knowing the ins and outs of business planning for M&A is absolutely necessary. If you're looking to acquire other entities, knowing how to plan for and execute on a superb merger strategy is necessary for doing deals that align with your company goals. On the other hand, if an owner is looking to exit the business, there are a number of highly-necessary steps that should be taken to ensure the process is properly planned and that the acquisition results in the highest possible payout to the business owner.

The key aspects of business planning

In this section we will be discussing some of the key aspects of business planning for mergers & acquisitions and how it relates to the business owner, his family and the succeeding generation of managers to ensure the business remains successful long after the founders are gone.

  1. Corporate Structure. We’ll discuss how to structure a deal to maximize payouts and get the highest return possible. In addition, proper planning requires years of foresight to ensure your business entity and overall ownership is structured so as to incur the least amount in taxes and to fully maximize the profitability of business assets.
  2. Tax & Legal Obligations. When working toward a major liquidity event, tax and legal liabilities can loom large. Knowing where potential hurdles lie and how to nip them before they get out of control requires expert accountant and legal expertise in getting the deal done.
  3. Deal Structure. Tax liability should not be fully considered without a full understanding about how the structure and payout of a deal could affect the taxes to be paid by the owners. Will the sale include stock, assets, cash, warrants, notes or some combination? Knowing the best combination will help to avoid the risks associated with selling the company in the first place.
  4. Valuations and Expectations. Many unsophisticated business owners lack the understanding of business value. Most assume their companies are worth much more than they really are. Fully setting and managing expectations by performing a professional and in-depth business valuation is of utmost importance.
  5. How to Sell. Selling is part science and part art. Knowing how to reach out to buyers, create a bidding war and maximize the payout for your assets to strategic third parties may require the help of a broker intermediary, but generally the fees are worth the extra boost to the bottom line. We’ll discuss the nuances of each segment and how to pick a broker that will fit within your strategy.
  6. How to Buy. When it comes to growth, nothing gets the job done faster than buying into existing cash-flow streams via M&A. We help business owners with their overall merger strategy to ensure decreased potential for mistakes in the process.

Planning your business exit or company merger strategy requires project managers with a focus on planning expertise that is as detailed as the business financials. We work with business owners to craft the best Confidential Marketing Memorandum to ensure your business puts on its best face before being pitched to investors and potential acquirers.

Agtech Capital Advisory

Maximizing seller value in mergers & acquisitions

Tell us about your M&A needs

1 Step 1

Our M&A Process

Mergers & Acquisitions Advisory
for the middle market.
  • Strategic Planning

  • Assess Financial Readiness

  • Align M&A Criteria

  • Research Target Industry

  • Target List Building

  • Target Outreach

  • Engage Targets

  • Letter of Intent (LOI)

  • Due Diligence

  • Closing

  • Target Integration