A well-executed pre-exit strategy

Most entrepreneurs face selling their company sooner or later. And it’s often a complex process which also involves big decisions about your own future. Not quite ready to fully distance yourself from your company? Keen to stay involved? A pre-exit strategy could be an interesting option.

What exactly is a pre-exit?

A pre-exit means selling your shares in your company in phases, almost always to a private equity investor. It’s an opportunity to cash out some of your equity, and at the same time assure the continuity of your company after the acquisition. You and your new business partner will agree a plan for you to remain actively involved in the development and growth of the company in the years ahead. The value of the company will often increase during this period; and you will see that reflected in the final statement.

What are the benefits of a pre-exit?

Several factors can make a pre-exit an attractive option for entrepreneurs. For example, if you want to start working less or take out some of your equity. But pre-exit strategies are also a popular way to expand your company. By joining forces with another party, you gain additional knowledge and expertise, and fresh capital which allows you to seize new opportunities. The exact pre-exit strategy that’s best for you and your company depends on your personal situation and what you wish for the future.

Is a pre-exit the right choice for you?

In our experience, many entrepreneurs are unaware – or insufficiently aware – of the possibilities of a pre-exit. Fortunately, our experienced M&A specialists are always available to discuss your personal situation and see which options are most suitable for you. We think it’s important you get the space and freedom you need to realise your ambitions, and we’ll work with you to achieve the best deal of your life. You can count on Marktlink for professional guidance – always independent and seen from an entrepreneurial viewpoint.