How do you maximise shareholder value on exit?
As a shareholder your goal is to maximise the value of your shareholding on exit.
Generating competition between cash rich buyers ensures you achieve that goal!
The Right Buyer: Cash rich buyers who can deliver the maximum valuation.
The Right Time: The point when buyers and seller appetite aligns.
As a shareholder you will consider how long you wish to hold your shares. Your consideration will then be on maximising the value of your shares on exit.
The primary route to release real shareholder equity value is through a full or partial exit (also known as a divestment, share sale, business sale). By being transaction ready (See: Transaction Ready best practice page) and connected to the Right Buyer at the Right Time, shareholders will maximise their exit value.
However, the challenge for most shareholders is:
- finding a buyer in a daily evolving market and
- finding them at the right time.
How can shareholders keep up with buyers and their strategies?
1. Engage with the Right Buyers
When shareholders want to exit, it is imperative to talk to the Right Buyer, otherwise you will waste a lot of time. By having buyer profiles you can assess fund availability, buyer compatability and deal completion metrics to shortlist the Right Buyers.
Premier advises on the Right Buyers across many industry sectors.
2. Engage them at the Right Time
Sell at optimum business performance. Be transaction ready. Engage buyers in “Buy” mode.
By networking routinely and utilising Premier, shareholders will identify the Right Buyers who have a track record of deals, the appetite and available funds to complete a deal.
Premier advises on the Right Time to engage the Right Buyers.
At Premier, we have a track record of advising shareholders on Transaction Readiness, Exit Planning and the Sale Processes.
Contact us if you would like to discuss your own exit process.
Rupert Lewis works at Premier Corporate Finance’s Manchester Office.
He has extensive knowledge within the TIC (Testing, Inspection, Certification), FM/Support Services and Retail sectors.