Private equity IPO exit readiness strategy

In Private equity

To maximize investor returns at exit, begin with the end in mind. EY has been the global IPO leader for the last 10 years, and EY transaction teams work with 60% of the global PEI 300 and 18 of the 20 largest PE funds in North America.

What EY private equity IPO exit readiness strategy can do for you

The EY exit readiness approach is a flexible and tailored IPO exit strategy. Using an engagement framework tailored to your business objectives, we guide you through potential capital-raising, business exit strategies and the organizational changes required to execute and sustain a successful IPO or alternative transaction.

We consider management experience, asset attributes, operational complexity and desired exit timing. By understanding the drivers that support an asset’s value, we help you communicate that story with maximum impact.

Whether your business exit is a strategic transaction or an initial public offering, we help you enhance value, avoid surprises and increase credibility. The “exit platform” approach has been honed over ten years. It considers a series of variables and aligns them in a tailored action plan covering up to 18 months before the M&A process begins. The concepts are simple, and the team's experience supports superior execution.

Value enhancement
  • Implementation support of and/or road map for revenue enhancement, margin improvement and greater capital efficiency
  • Supportable value story that is reconciled to financial statements and forecast
  • Reduced buy-side diligence time and cost can increase potential buyer pool
Accelerated closing that avoids surprises
  • More favorable post-close adjustments
  • Tax issues addressed early for shareholders, buyers and sellers
  • Identification of potential deal issues up front
  • Transparency promotes a smooth and efficient process
Disruptions limited
  • Detailed, self-service data room that streamlines buyer interaction
  • Rigorous preparation for buyers’ diligence performed upfront – data scrubbed, and questions anticipated
  • Management able to focus on running the business instead of the sale process
Enhanced credibility
  • Independent view of normalized earnings, financial data and forecast
  • Management strengths can be highlighted with clear, confident and consistent presentations and buyer interaction
  • Reputation enhanced through a well-executed deal
Benefits of IPO exit strategy
  • The fund: exit readiness gives more optionality regarding timing, speed to execute and type of exit. Funds also develop a reputation for bringing well positioned/fairly articulated businesses to market.
  • The portfolio company: better able to take the pressure of exit timing while delivering trading targets. Sold at a target valuation that works for all and which is based on facts and tested positioning.
  • Individuals: better prepared for pressure from exit process once it begins, while enhancing their experience and CVs. 
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