What Your Investment Bank Can’t Do For Your Exit (And What They Can)

do and dont
WHAT INVESTMENT BANKS CAN’T DO (THE 12-60 MONTHS PRIOR TO YOUR EXIT):
  1. Make your value proposition into a compelling story.
  2. Document your competitive positioning.
  3. Diversify your Customer base.
  4. Build a reliable organization that makes you dispensable.
  5. Build repeatable processes.
  6. Refine your business model to produce recurrent revenues streams – supporting sustainable earnings growth.
  7. Maintain your accounting records and working systems processes so that you ace the due diligence.
  8. IP, patents, and trademarks are well documented.

 

WHAT INVESTMENT BANKS ARE REALLY GOOD AT:

  1. Valuing your business.
  2. Producing an Information Memorandum that succinctly summarizes why your company is a great acquisition
  3. Understanding what motivate buyers in your industry or markets.
  4. Finding the most suitable strategic and financial acquirers and bringing out the strategic advantage of your business for each specific potential acquirer.
  5. Managing a multi-bid controlled auction process to maximize value.
  6. Assisting/leading negotiation of the terms of the deal.
  7. Structuring the deal to maximize your exit proceeds including structuring the earn-out formula if necessary.
  8. Closing deals in your sector at premium valuations or telling you to walk away from the wrong deal.

adapted from What Your Investment Bank Can’t Do For Your ExitThe Portfolio Partnership

Leave a Reply