Exit value
The buyer’s question is “where can I take this?” Make the answer jump off the page.
Good exits are built across the hold period, not in the last six months. The key is to build up supporting evidence a buyer finds compelling.
An equity story is evidence accumulated over years, not a document written in the last six months. The three-horizon plan keeps exit-relevant options developed throughout the hold period, so they don’t get haircut by the next owner.
A 5-store US pilot was opened as a working demonstration that the US market was the obvious expansion path. Short-term profit or loss in the pilot was irrelevant.
The full story →Buyers aggressively discount anything they do not want because of the disruption required to execute a disposal themselves. Portfolio shape is an exit lever, whether the exit is a sale, a carve-out, or a break-up.
Experience includes disposing of a non-core rump estate after a major convenience acquisition, leaving a coherent 900-store business. The disposed estate included kiosks, tiny stores and stores with the wrong foot traffic.
The full story →There are two right moments to divest: when there are willing buyers, and while the asset’s record is impeccable. With a clean track record the only possible surprise is a bad one: a single LTM blip breaks the curve.
A highly seasonal, non-core global publishing brand was divested with a consistent growth path, when there were active buyers in the market. It was sold to a buyer who was confident they could take it further. A fragile but consistent growth trajectory was locked in at a healthy disposal value.
The full story →The method in full, in our investment lifecycle article: Positioning for Exit.
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