Maximizing Exit Value: How to create value through credible and accelerated plan

Recent reports indicate increasing pressure on private equity firms to deliver returns, with the average holding period for portfolio companies extending to seven years. Despite improving financing conditions, exit values remain stagnant compared to five years ago.

The pursuit of maximizing value is a continuous endeavor for firms, whether at pre-acquisition, mid-cycle, or exit stages. This process is fraught with challenges but also presents opportunities if executed correctly; key to success is instilling buyer confidence in future profitability and growth.

This publication offers strategic advice for businesses planning an exit. It emphasizes the importance of credible plans that focus on operational optimization, a clear transition strategy, and look at the business from a buyer’s perspective to present a compelling value narrative. It stresses the need for accountability and clarity to enhance the business's appeal to potential buyers, and showcases real-world case studies demonstrating significant EBITDA improvements and successful high-value divestitures.