Ultimate Exits is an essential read for entrepreneurs and shareholders

This book provides a detailed examination of the exit preparation process in financial and strategic ventures. Underpinning the creation of value in both of these ventures are the drivers of high growth potential. In the case of a financial venture, the business itself must create the business model to exploit the growth opportunity. A financial business must build an organization which is capable of delivering a robust business to the buyer which enables the buyer to exploit its revenue growth potential.

Businesses which create value by developing an asset or capability which could be exploited by a large corporation achieve an exit through a trade sale to a strategic buyer. Strategic value is created through intellectual property or deep expertise which creates a sustainable competitive advantage in the hands of the strategic buyer. It is the strategic buyer who exploits the growth potential through an extensive distribution network.

The major recommendation in the book is that entrepreneurs need to prepare the business for sale by focusing on the manner in which the buyer extracts value for it. Understanding how value is created, how buyers perceive risks inn the business and how buyers will exploit its potential are the drivers of a preparation program for selling the business.

The book has 17 chapters covering the following:

1. Forget the multiple
2. Strategic v.s financial exits
Financial Exits
3. Leveraging the financial model
4. Increasing sustainable profits
5. Build a platform for growth
6. Finding financial buyers
Strategic Exits
7. Threats and opportunities
8. Identifying strategic value
9. Finding strategic buyers
Sale Preparation
10. Sustainable competitive advantage
11. Enabling the opportunity
12. Reducing risks to the buyer
13. The acquisition process
14. Deal structure
15. Selecting professional advisors
16. Other considerations
17. Conclusion