Exit Planning

Do you know the best way to maximize the valuation of your company?

Selling your business is an enormous and complex decision.

We help you to evaluate your strategic alternatives: selling now; transitioning to the next generation or to a management buy-out; or a middle path, taking some money off the table via a “leveraged recap.”

If the goal is to find a public company strategic buyer, or a Private Equity firm that wants to acquire “clean” companies as part of a roll-up strategy, then there may be several operational, financial, administrative, and legal items that will need to be attended to.

After your family, your business is the most important thing you have. It may even be an extension of your family. If you were ever to sell, you want to be sure you get every penny you deserve. However, to a buyer, it is just another business. So what needs to be done to drive valuation up?

Most businesses are valued in multiples of EBITDA. And better businesses – those with higher margins, reliable and predictable earnings, and a credible plan for the future – get higher multiples. Yes, the multiple will depend to some extent on current economic conditions, the industry, and other factors that you may not have a lot of control over. However the biggest single factor is one that you do control: EBITDA.

Stanton Associates works with companies to build the supporting strategies, processes and infrastructure to accelerate revenue. Applying our extensive expertise in sales and marketing, we ensure the two areas are working effectively and in alignment to achieve desired growth targets.

But it’s not just about growth—it’s profitable growth that counts. We identify where you have the greatest leverage to impact EBITDA. For example, are the efforts of your team appropriately focused on the most profitable customers, products, segments, channels, etc.? We help companies establish systems and processes to capture this information and act accordingly. Growing the top line 10% to 20% while improving gross margins by “only” a few percent will have a dramatic improvement on EBITDA and the value of your company.

Stanton Associates… a key part of your team

Lawyers, CPAs, investment bankers, and valuation experts – all are key advisors that you need when preparing for an exit.

Stanton Associates adds a critical dimension to your team, bringing a focus on maximizing the valuation of your company, and executing the plan to achieve that.

Take Action

We will help prepare a detailed, executable plan designed to achieve your objectives. Key elements of the plan include:

  • Identify the desired objectives. These are rarely just financial. One must consider family, minority shareholders, employees, customers, and lifestyle considerations.
  • Clean up financial statements. It is important to show a buyer’s due diligence team that there is minimal risk of a “surprise.”
  • Ensure fair treatment of employees and other stakeholders.
  • Structure the right deal to maximize desired objectives and peace of mind after the transaction.

Selling your business is an enormous decision and potentially very complex. Stanton Associates is the right firm to turn to for experienced, careful advice that considers all the issues – not just the financial.

Each company is unique and requires unique and innovative solutions. We do not send in junior staff with canned solutions, but instead use only experienced, highly-qualified professionals to tailor a solution that exactly fits your needs.