Having established a successful and growing business, you will start to look to realise value and/or take your company to the next stage in its growth cycle. Are you undecided as to whether a private sale or an IPO is the right solution for you and your business? Have you considered a dual-track process which can maximise optionality for your shareholders? When is the right time to exit or IPO? The answers to these questions will depend on a number of factors, some unique to you and your business while other relate to the market. Our guide will help you choose the right exit solution.
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If you have been looking to exit your business in the last couple of years, you will have faced many challenges. Brexit, the COVID-19 pandemic, the Russian invasion of Ukraine and a high inflationary environment have all curbed the appetite for such deals. With EBITDA multiples falling, transactions taking longer, some high-profile transaction failures, coupled with an extremely quiet IPO market have made it challenging to decide on the optimal way forward.
With market volatility easing, the broader equity market looking brighter and plenty of PE dry powder, this may be the right time to examine your exit and realisation options again. Transacting deals should become easier and we expect IPOs to resume in the second half of this year and into 2024. We are already seeing positive signs such as an uptick in activity, the narrowing of the valuation gap between buyers and sellers in M&A and a few green shoots in the IPO market.
For many businesses, this is the key question they will need to answer first and foremost. Your business’s performance, trends in your particular sector, the stage of growth of your company and whether you have the right infrastructure to support that growth will all need to be considered.
Whether you decide a private sale or an IPO is best for your business, much of the preparation work required is common to all three. Our guide will help you understand the issues you will need to address as you prepare for your exit. It will also compare the process roadmaps for those options available to you.