Exit and Outcome Modelling

Today’s swiftly evolving business landscape presents unparalleled opportunities for fast growth dramatic transformation. However, harnessing this potential requires foresight born from knowledge and strategic thinking. Veristrat’s pundits provide valuable insights into all aspects of a firm by performing necessary calculations and making recommendations that will enable our clients to execute their exit successfully.
Business Exit Strategy

The summary of Exit Modelling

Planning an exit strategy for both positive and negative contingencies has become an imperative part of Business Planning. An exit strategy can be defined as a plan executed by an investor, trader, venture capitalist, or business owner so as to liquidate their position in financial assets or to dispose of tangible business assets once predetermined criteria have been met. If in a situation where business operations are no longer sustainable and an external capital infusion is no longer sufficient to maintain operations, then termination of operations and liquidation of all assets is the best option.

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.

Exit Strategy for Investors
Startup Exit Strategy

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.

Venture Capital Exit Strategy

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
  • Liquidation
Selecting an exit strategy depends on a number of factors: for example, how much control does the owner want to retain of the business, or do they simply want to change the way in which they run it? Are they willing to alter their business practice going forward as long as they receives a fair price for ownership? Selection of an exit strategy can also depend on the business type, size, or the level of liquidity.

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.
Our in-house experts provide unsurpassed guidance on Exit and Outcome Modelling. Our team strives to ensure that the client can accurately anticipate the potential outcomes based on their decisions. We provide detailed analysis relating to possible scenarios involved in Exit and Outcome Modelling.

Think we can help? Let us know how.