The MMR Advantage™ is recognition of the importance of planning, implementing and transitioning in such a manner that enables the business owner(s) to achieve their business and personal goals. A primary means of preparing the roadmap to success is an Exit Plan. Much like a business plan, an Exit Plan will enable the owner(s) to:

• Create strategic options
• Control how and when to exit
• Maximize company value in good and bad economic cycles
• Minimize, defer, or eliminate capital gains, estate, and income taxes
• Reduce uncertainty

Unlike most M&A advisory groups, Middle Market Resources is most focused upon charting the correct course of action, not the most expedient. The three primary activities of planning, implementing and transitioning may take one year or more than likely, three or more. It all depends on the level of preparedness that has been achieved. The major points of the process are:

Plan

The plan begins with an in depth analysis of ownership goals, the current financial & structural position of the business, market analysis and an internal diagnostic of operations for value creating opportunities. The purpose of the Exit Plan is to provide a playbook on how best to align the owner(s) business and personal goals.

Implement

Here is where value is created and uncertainty reduced. Action items from the plan are implemented. Business operational improvement will now be targeted from an outside perspective, focused on reducing risk and increasing/stabilizing operational cash flow. A few examples of improvement include a revised management and governance structure, succession planning, enhancing capital structure, business plan focus and market realignment.

Transition

Business transition options are varied and highly dependent on the business owner(s) value system. The methods of transition and typical values received are clarified during the Exit Planning process where the pros and cons are weighed against business goals and personal values. Most private and closely-held businesses are owned by investors, operators, entrepreneurs, employees or family members. Methods of transition for these ownership groups often include one of the following:

• External sale to Private Equity or Strategic Business
• ESOP
• Family transfer / Trusts
• Management Buy-Out
• Recapitalization

Middle Market Resources and the MMR Advantage™ will provide the means to successfully chart a course toward value maximization for business owner(s) and stakeholders alike. Contact us today to discuss how we can get started on the journey toward realizing the fruits of your hard-earned labor.