Trying to achieve a multiple-maximizing port-co exit? Start here.
One of the five ways to create equity value in a PE-backed company is to drive multiple expansion. Thinking ahead to a multiple-maximizing exit? Gotta nail 4 Winning Moves.
WINNING MOVE #96
Begin planning your exit early... and refine the plan over time.
Ever heard the phrase, "begin with the end in mind?" Likewise, one of the keys to achieving a multiple maximizing exit is to begin your hold period with the exit in mind. As counterintuitive as it may seem, start planning your exit years before you plan to exit. Here's how.
WINNING MOVE #97
Systematically reduce or eliminate enterprise risk.
Fetching a big exit multiple is a function of 2 basic factors: the presence of upside opportunity, and the absence of downside risk. The higher the ratio, the higher the multiple. In this video, learn how to reduce enterprise risk to expand your exit multiple.
WINNING MOVE #98
Grow your recurring revenue
Private equity buyers love recurring revenue like kids love candy--and they're willing to pay way more for $1 of recurring revenue than for $1 of non-recurring revenue. So if you want to maximize your exit multiple, maximize your recurring revenue. Here's how.
WINNING MOVE #102
Do reverse due diligence on your business.
Reverse due diligence involves putting on your buyer hat, and doing due diligence on your own company. Doing this before you go to market will help you gauge your company's exit-readiness, and get prepped to achieve a multiple-maximizing exit. Here's how.