ClearPath Exit Strategy Planning and Preparation

Sell or Keep the Business Indefinitely or Transition

OverviewValue Realization ProgramFinanceOperationsSales ManagementM&A Advisory ServicesExit StrategyMarketing Services

Whether a business owner is looking to “someday” sell or keep the business indefinitely or transition to a management team or family member, ClearPath helps owners evaluate and optimize their options to give owners choices for near term and long term.  From identifying changes that will increase value and cashflow, to developing projections for future growth, to connecting owners to potential buyers and facilitating a sale, ClearPath presents businesses with exit choices that align with their goals and yield maximum value.

Assess Options

ClearPath conducts a detailed evaluation of the business and the personal goals of the owners and other key stakeholders.  We evaluate the current state and realistic versions of possible future states that align with the goals of the owner to maximize value to them.  This approach goes far beyond purely monetary goals, and includes the personal goals of the owners and the reality associated with living through a transaction or other of the various exit strategy options.  ClearPath’s approach to Exit Strategy Planning and Preparation includes:

  • Current realistic valuation of the business and identification of hurdles to greater value
  • Review of forecasts of ranges of future business performance
  • Assessment of the owner’s personal goals and those of other key stakeholders
  • Realistic evaluation of Exit Strategy Options
  • Ensure the business is “sellable” whether or not there is a specific plan or objective to sell
  • Compare the option of selling to the option of holding and gradually detaching from the day-to-day operations or other transitions
  • Address specific issues that could negatively impact a potential sale if that is the chosen path
  • Discussion and identification of potential strategic acquisition candidates to enhance value beyond organic growth
  • Creation of contingency plans to ensure continued optimal performance while Exit Strategy Options are being explored

ClearPath represented us as Sellers of a Hardware Reseller and Services business when we were approached by a Strategic Buyer. ClearPath prepped our Company for the process, helped clean up historical financials, created the forecast model which was the basis for valuation, prepared the offering package, negotiated the price and terms into a Letter of Intent, facilitated due diligence, referred us to a great transaction attorney and worked with him to help negotiate final terms and complete the transaction. The total cash increase to us as compared to the original offer we received: $1.4 million after tax and $2.2 million pre-tax.

John Fournier, Seller of Hardware Reseller