The Exit Review has three key objectives:
- To conduct an external assessment of the business to ensure that the client is focusing on the key drivers that will increase its exit price.
- To position the business in the most appealing way to potential buyers.
- To identify any weaknesses a buyer would highlight during the due diligence process.
It is focused on:
- Obtaining the highest EBIT level in the time-frame.
- Providing an indication of valuations based on comparable EBIT multiples.
- Assessing how different buyers will value the business and position it accordingly.
- Manage risks so that they do not affect price
Its key output is a top level action plan aimed at increasing valuation which includes:
- Strategic plan (organic growth and by acquisition) and operational improvement plan.
- Plan for positioning business to fit buyer’s strategy including the valuation of potential synergies.
- Actions to reduce risk factors.
- Strategic framework review, etc. A review process to ensure actions are implemented.