Successful exits have become harder to achieve and are taking longer with recent economic headwinds and regulatory constraints, but as deal flow picks up, here are some exit considerations for private equity firms, portfolio management teams and other business sellers:
- Plan early but evaluate often: The best exits are formulated early in the deal stage, but it is crucial to routinely review your options, analyze it from the lens of potential buyers, and remain flexible and creative to reach your end goal of a successful sale.
- Continue to enhance business value: Do not delay operational improvements during an exit process and always keep in mind market expansions, product innovation needs, sustainability, and transformational opportunities like Artificial Intelligence.
- Surround yourself with strong advisors across industries: include a financial planner, investment banker, lawyer (including a transactional and estate planning lawyer), and accountant to help navigate the complexities of the exit process and create an exit structure that will maximize value for you.
- Keep clean data and documentation: Maintaining audited financial statements and fully executed and complete legal contracts, protecting your IP rights, and complying with all applicable regulatory laws and regulations will minimize risk, foster trust, and make it easy for transparent communication with stakeholders.
By following these tips and looking ahead with an exit-first mindset, you can increase the likelihood of planning and executing a successful exit.
Our weekly newsletter is published to share updates and insights from part of our team of Private Equity and M&A legal talent
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- Lingering uncertainty about valuations and liquidity is compelling buyers and sellers to consider unconventional negotiation tactics and sophisticated technologies to gain an edge in the deal room.
- It is estimated that the global AI market could reach $2.03 trillion by 2030.
- Opinion is split as to how generative AI will drive investment opportunities.
- Private equity executives are most likely to implement an AI solution to track portfolio management and performance.
- Join us for a networking opportunity and roundtable discussion on how artificial intelligence is reshaping the dealmaking landscape.
- Thursday, June 6, 2024 at Nixon Peabody's Boston office.
- Join us for a panel discussion on the host of hurdles that sellers often face and how to best navigate those issues. We'll provide a step-by-step overview of the deal team, the process, and the documentation.
- Wednesday, June 12, 2024 at Good Luck, 50 Anderson Avenue, Rochester, NY
This newsletter is intended as an information source for clients and friends of Nixon Peabody LLP. The content should not be construed as legal advice, and readers should not act upon information in this publication without professional counsel. This material may be considered advertising under certain rules of professional conduct. Copyright ? 2024 Nixon Peabody LLP. All rights reserved.
