Step One: Understand where you stand with EXIT PREP assessment.
Tower has simplified the exit planning process to a basic EXIT PREP Assessment. In this process we seek to provide the business owner with analysis and input to the following critical questions.
- What is the value of the business from a financial perspective to a third party buyer?
- If I was to embark on a “sale” how would the company rate as a QUALITY opportunity? This includes the quality of the company cash flows (income, depreciation, addbacks, adjustments), the company management team(depth, experience, skill sets of managers who will continue with the company). customer base, and the attractiveness of the company industry.
- Are there facets of your business where a buyer will find “leaks” that could cause their initial perceptions of value to slide lower?
- What due diligence issues will come to the fore should I work to sell or transfer the business?
EXIT PREP services are provided on a fixed price contract and typically are completed over a 4-6 week period. We highly recommend that an EXIT PREP analysis be completed 2 to 3 years before a planned exit. This will allow time to correct any deficiencies prior to beginning an exit process.
At Tower we believe it important to separate the EXIT PREP work from any business sale engagement. We know as investment bankers ourselves that the job of the sell side banker is to “apply lipstick and sell past” any issues. Getting unbiased advice before a sale is invaluable and can prevent failed business exit/sale/transition projects.
STEP TWO: Get part time EXIT CFO support to help you make the changes that will positively impact your EXIT.
Tower offers business owners assistance in preparing their company for an exit. We call these services EXIT CFO services. The scope of work is typically comes from the results of EXIT PREP. EXIT CFO service is provided on a part time basis to work with the owner focusing on the high impact issues that can improve an exit outcome. This work will range in most cases from a half day week to 2 days a week and extend for 3 to 12 months as needed to implement change in the business.
The projects can include a wide range of topics. Examples are upgrading financial reporting, installing cost and pricing systems, working capital management, customer profitability improvement, or productivity improvement. Other projects require coordination with legal or tax providers to address exit related issues in those areas.
Tower EXIT CFO gives an owner a practical, cost effective way to get help in making the changes needed to achieve a successful exit.