Exit Strategies. Arena Capital Advisors helps our clients – business owners – develop exit strategies. Every business owner should have an exit strategy. A hazy statement of intent, like “I’m going to sell my company someday…” is not a strategy.
- An understanding of the different categories of buyers of businesses and how they differ
- Private equity groups
- Co-owners or partners
- Direct competitors
- Children or other family members
- Vertical integrators
- Senior management
- Individual entrepreneurs
- Strategic buyers
- Employee Stock Ownership Plans (ESOPs)
- An understanding of the business owner’s personal objectives. If two or more identical offers are presented, how will you break the tie? In addition to getting top dollar, what else is important?
- Identifying the category or type of buyer that fits the company best
- A plan for building value in the areas important to the most likely buyers
- Getting corporate housekeeping in order
- Optimizing accounting and tax methods
- Integrating with estate and/or family wealth planning
- Selecting other key advisors
- Using the exit strategy as a filter for major business decisions
Sale of Businesses. We sell companies. As investment bankers, Arena Capital Advisors manages the sale of business on a turnkey basis or can handle any subset of the process.
- Confidential Information Memorandum
- Non-Disclosure Agreements
- Find and contact potential buyers
- Negotiate price, structure, terms
- Prepare for due diligence review
- Coordinate legal and other advisors
- Review all contracts and agreements
Our Clients. Arena Capital Advisors serves business owners. Our typical client:
- Owns a private company
- Is based in central or eastern North Carolina (from the Triad to the coast)
- Has revenue of $10 million or more
- Is profitable
ESOPs. An ESOP is one of the categories of buyers identified above, and results in ubiquitous employee ownership of the company through shares of stock held by the ESOP Trust. Arena Capital Advisors has built a sub-specialty practice around ESOPs and served numerous clients in evaluating and/or implementing ESOPs, and selling companies that had partial ownership by an ESOP. ESOPs are complex and nuanced, yet offer a powerful combination of motivation for all employees to literally “take ownership” of their work along with some of the most compelling tax benefits available to small and medium sized businesses.