Become Investment Ready - Exit Planning

Exit planning is the preparation by an entrepreneur for the full or partial exit from his or her company, to maximise the enterprise value of the company in the event of an external stakeholder investing in the company, and thus also his or her shareholder value. Other non-financial objectives could also be pursued, including the transition of the company to the next generation, sale of the company to employees or management, and other altruistic objectives. Continuity and succession planning are sub-components of exit planning, and the latter would include the identification and hiring of someone to be trained and retained as a successor of a key person in a planned manner. Exit planning also allows company owners to see their company from the standpoint of a potential buyer, and thus vividly portrays the strategic framework of a company.

Being investment ready can be described as the business being perceived to possess the attributes, which makes it an investable proposition by an appropriate investor, for the capital that they need. Investment readiness looks at the overall health of the business and its ability to take on capital in its current form. Factors considered include, but are not limited to:

  • Governance and Compliance
  • Financial information
  • Social impact
  • Key strategic partnerships (for example with other financiers or suppliers)
  • Performance track-record
  • A clear ask - knowing how much capital one is looking for
  • The team - is the right team with the right dynamics in place?

Objectives that will be highlighted include defining proceeds, minimising risk, identifying opportunities, and introducing best practices.

We will assess the three sources of enterprise value, being the value of tangible assets, of intellectual capital (human capital, relational capital and structural capital) and debt. Alongside the financial performance of the company, these will allow us to complete a business gap analysis and present key action items.Ā 

The key functional areas that will be addressed are:

  • Strategy
  • Product and technology
  • Operations
  • Marketing
  • Sales
  • Financial management
  • Legal
  • Intellectual property
  • Human resources
  • Leadership and soft skills

The purpose of the report is to identify gaps and opportunities that, if addressed, will decrease risk, support sustainable growth, and increase the valuation potential of the company.

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Dataroom Construction and Due Diligence Checklist

We will also build the data room checklist to detail those areas of the business that attract investor attention, to ensure that the company is well prepared for the due diligence process.

Due to the specific nature of thisĀ  investment partnership and the different scope involved with each set of facts, ourĀ  prices start at R12,500 (ex VAT) per month for three months, and can only beĀ  confirmed once we have conducted a planning and scoping meeting.

We look forward to becoming your investment partner.