Owners of businesses typically dream of going public or performing an IPO, even though less than 1% of businesses ever achieve this. However, for the remaining 99% of businesses out there, there are multiple viable options that owners should consider and evaluate when determining their business exit strategy.
Ideally, owners should plan for their owner liquidity event at least five years in advance of their “target date”. However, sometimes an opportunity appears unexpectedly, and Lantern is called to rapidly evaluate the opportunity and the assist our clients in negotiating next steps.
Some strategies and alternatives that Lantern Capital Advisors has helped clients to evaluate and consider in regards to their owner liquidity strategy include initial public offerings and providing the roadmap to achieve that outcome, a sale to a third party, strategic buyer or financial buyer, management buyouts and ESOPs, obtaining debt financing so that an owner may get some capital out of the business (because ultimately he wants to sell and this initial debt will be paid off once the company is sold, but the entrepreneur gets access to capital sooner), or direction towards liquidating the assets of the company.
Learn more about Owner Exit Strategies and Owner Liquidity Events,
Download the PDF white paper Investment Banking Fees Examined as seen on CFO.com
Visit the Lantern Capital Advisors Website for more information on Owner Liquidity