By Andy Stockett
Your company has “hit the radar screen” of a larger competitor, a company seeking an avenue into your industry, or a Private Equity Group (PEG) looking for a platform acquisition that allows it to put to work money raised from investors. Or maybe you have received a letter from a firm indicating that it has buyers for your company. What do you do?
If you have put as much effort into planning your exit from your business as you have in planning your personal estate, then you are prepared for these inquiries and are in a position to respond to, and even take advantage of, the situation. Of course an exit plan has to be fluid—specific factors will determine strategy and tactics—but with the large amount of cash on the balance sheet of corporate America and approximately $490 BILLION waiting to be invested by PEGs, business owners would be well advised to at least consider what a transaction would look like. And this means determining in advance what it would take to ensure a favorable outcome for owners, management, and other stakeholders.
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