Exit strategies

Case exit options Experts Mergers&Acquisitions
Recent activity on Jun 25, 2018
2 Answers
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Ashutosh asked on Jun 24, 2018

Hi all,

I was refering to Case in Point for the frameworks and I noticed under the M&A framework exit strategies. I had two questions:

1) It had a question on "How long does the client want to keep the company?". Under what circumstances would someone want to buy a company only to sell it off after some time?

2) What are the major parts within a company that on its own have value and could be sold off to some other company?

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Vlad
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replied on Jun 24, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

1) It may be a private equity fund that buys the company, improves the performance and then sells the company in 4-7 years with a significantly higher price

2) There is a number of them:

  • Physical assets (land, machinery, warehouses, etc)
  • Parts of the network (i.e. stores)
  • Intellectual property, patents, R&D portfolio
  • Products / product lines
  • Subsidiaries

Best!

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Anonymous A replied on Jun 25, 2018

Just so you are aware, I have done over 200 cases and have never seen exits talked about in a case. It can be nice to mention that you're thinking about it, but unlikely you will be asked how can we exit the deal etc

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Vlad gave the best answer

Vlad

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McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
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