Private Company Transition

Many private businesses have no exit plan. Sometimes a buyer comes out of the woodwork and makes a company an offer it can't refuse. But most mergers and acquisitions do not happen this way. If you think that you will want to prepare your company for M&A in the near to medium term, you should consider planning for this big event. Being ready to demonstrate how and why you are successful is a big value-enhancer at sale time. It is equally important to understand which aspects of your business will limit or decrease your corporate value, and how to address these shortcomings.

One of the most critical elements of a private company transition is management succession. Only by letting go can the founders ultimately preserve and enhance the value they have created over the years. This type of succession planning should be done on personal, organizational, and financial levels. Oftentimes, the right successor is not a clone of the founder. So the right solution involves spreading the founder's strengths and competencies throughout the organization and then creating a new identity for the successor. And, of course, the right solution for the company effectively addresses the financial implications of the succession.

“In helping us to understand our value proposition and our unique organizational strengths, Trek also prepared us for eventual succession and corporate finance alternatives.” [Read More Client Testimonials]

• Consulting Firm, FDA/Medical Device Industry - Creating an exit plan for the founders

Featured Publications:

• “The Ultimate Challenge: Maximizing Private Company Value” - M&A Today
  
  
• “What drives shareholder value in family firms?” - Family Business Magazine E-Newsletter
  
  
• “How to Plan an Off-site Family Business Meeting” - Family Business Magazine E-Newsletter
  
  
• “Can Your Company Survive and Thrive Without You?” - Trekking, Issue 5