The summary of Exit Modelling
The summary of Outcome Modelling
Businesses are dynamic, and sometimes disorderly. Therefore, it is necessary to be prepared for any possible outcome. Implied risk in any business is always present due to the uncertainty of future results. The purpose of financial or project management is to be prepared for every potential outcome resulting from current decisions or investments. As such, risk management in any business scenario or financial expectation should be outcome-focused rather than being process-focused. Outcome Modelling estimation is performed in order to predict results based off of more advanced analysis rather than simple arithmetic.
Purposes of an Exit Strategy:
- For exiting an underperforming investment.
- For closing a business that is failing to generate profits.
- For limiting losses.
- For legal reasons such as estate planning, liability lawsuits, or a divorce.
- For the simple reason that a business owner/investor is retiring and wants cash out.
Importance of an Exit Strategy
- It helps to reduce stake in the business.
- It improves the probability of success.
- It significantly increases the ultimate exit valuation.
- It is a pre-requisite for a financing strategy.
- It is a foundation for an entire company plan.
Ready to exit your business? Check out our Estate Valuation.
Different Exit Strategies
Veristrat helps clients to successfully exit their businesses. Here are some different exit scenarios:
- Merger and Acquisition
- Initial Public Offering (IPO)
- Management buyout
- Family succession
How can we support you?
- By identifying the appropriate exit plan for your business.
- By calculating the value you can expect to receive based on your exit plan.
- By identifying the exit options that are most aligned with your goals.
- By identifying the outcomes of particular exit scenarios.
- By helping companies determining the conditions that will trigger an exit, as well as the conditions that will preclude an exit.