Now you can prepare for

a high-value business exit

with significantly less risk

Get ready for a

successful exit
Part 1.
Current climate
What’s inside:
• Learn the common the risks
associated with exits and
how to avoid them
• Decide which type of exit
strategy is right for you
• Develop your business exit plan
with our purpose-built checklist
• Set clear accountabilities; assign
tasks and deadlines, and set
up collaborative workflows
to increase efficiency
• Automate and simplify the
process with our M&A: Company
Sale/Exit Pathway
• Execute your exit in the
world’s most advanced
Virtual Data Room
Heading
for the
exits
A massive 77% of baby Business owners need a comprehensive
exit plan that surfaces issues and
boomer generation addresses those within the business
owners expect to exit their prior to going to market. Their main
businesses in the next priority should be improving the
business so that it is attractive to
decade – 53% of them external buyers.
within the next five years,
according to William Buck “Unfortunately, too few
(Exit Smart Survey Report 2019). realize the importance
of proper exit planning
The shift presents an opportunity
for buyers and sellers alike, but brings in ensuring that they
with it the potential for serious risk if maximize the price that
exit strategies aren’t prioritized and they receive when they
planned in advance. Despite the high
numbers planning to exit, only 34% finally decide to sell.”
of those surveyed actually had an exit Liz Smith, Director, William Buck
strategy in place.
With the added strain placed on
businesses by the global COVID-19
pandemic, many more will be starting
to weigh up their options – including
the potential sale of business – which
makes it even more critical to start
this planning as early as possible.
ansarada.com
Part 2.
Risks associated
with exit planning
Without a proper
exit strategy,
you risk:
1. Loss of business value
There are a number of reasons why a
poor business exit can lead to a loss of
value both within the transaction and
of the business itself.
Dependence on owner: According
to William Buck, 21% of owners
said their business is highly reliant
on themselves. Unless they can
demonstrate the business will be
able to run smoothly without them,
the value of the business stands to
decrease with their departure. They
need to be able to show that the
future profitability of their company
doesn’t depend on their being there
– something they will struggle to do
without proper succession planning.
Buyer has the upper hand: If the seller
is disorganized with their business
exit planning, they lose control over
the sales process and the buyer gets
to dictate the terms of the deal. If they
don’t have the information structured
and ready to show profitability, owners
will find themselves at the mercy of
the market and not able to proceed on
their own terms.
Lack of confidence: Without visibility
over current business health, owners
lack the confidence to go for their
optimum sale price. Just 42% stated
they were confident they could achieve
a reasonable price for their business.
2. Being blindsided by ‘Value-building activities that prepare
you for an exit are synonymous with
the due diligence process the activities that create healthy and
Many business owners are surprised profitable businesses, right now’, and
by how intensive due diligence can be, an owner could increase the saleable
and find themselves underprepared value of their business by ‘up to 300-
for the scrutiny their business will face. 500% in two to three years’ quite
With 61% of them working more than reasonably.
40 hours a week already, the amount Ultimately it comes down to being
of additional time, cost and resources ready; by having critical business
that are redirected to the due diligence information visible, organized,
process can take its toll. managed and structured in the way
that not only improves business health
3. Struggling to find a buyer and value in the short term, but that –
In the survey, 31% of business owners in the long term – will give buyers full
cited ‘being able to find a buyer’ as their confidence in their decision.
top concern regarding their exit. And
they are right to be uneasy; a US report
by the Exit Planning Institute calculated
that only 20-30% of businesses that
plan to sell actually find a buyer.
How to avoid risk:
Stay future-focused, act
short term
To eliminate these risks, business
owners need a comprehensive
exit plan that surfaces issues and
addresses those within the business
prior to going to market. The priority
should be improving the business so
that it is attractive to external buyers. In
fact, Forbes says you should consider
your exit strategy to be the same as
your growth strategy.
ansarada.com
Part 3.
Types of exit strategies

Types of
exit strategies

There are eight common 1. Merger and acquisition

Ultimately, each exit strategy will be
right for different people, for different
business exit strategies: exit strategy (M&A deals) reasons. Ambitious entrepreneurs
might look at a merger or acquisition,
2. Selling your stake to while family succession or MBO
a partner or investor could be an attractive option to other
business owners.
3. Family
succession While the words ‘business exit’ might
have negative connotations, a clear
4. Acquihires business exit strategy simply means
you are prepared for a successful
transition – whatever that looks like
5. Management and for you and your business in the
employee buyouts (MBO) current climate.
6. Initial Public Learn more about the
Offering (IPO)
types of exit strategies,
7. Liquidation including the pros and
cons of each, here.
8. Bankruptcy

ansarada.com
Part 4.
Developing your exit plan

To avoid the risks

associated with
poor business exit
planning, a long-term
strategic approach
needs to be taken

William Buck suggests it takes 3-5 “Ansarada streamlines

years to set up a business for a
successful exit, which is why a long-
the transaction process.
term strategy should be in place well The intelligence you
in advance. can gain from the
The best advice we can give you reporting functions
in learning how to make a business
exit plan is to follow a framework.
helps us gain an insight
into bidders’ mindsets.”
The following checklist contains
all the critical documentation that David Williams, founder, Kidder Williams
ensures a company is healthy and
prepared for sale, built off insights
from more than 35,000 transactions.
Use it as a template to see exactly
what you’ll need to consider and
provide for your exit.

ansarada.com
M&A: Company Sale/Exit Checklist Customers, Marketing, and Sales

All plans are subject to development and Customer Feedback Reports 3 requirements YES NO

configuration. There is no one solution,

and the M&A Checklist should be Financials
thought of as a starting point only.
Auditor Correspondence 3 requirements YES NO

Financing Arrangements 7 requirements YES NO

Start your free trial
to see the full list
Forecasts and Projections 6 requirements YES NO

Monthly Management Reports 4 requirements YES NO

Statutory Financial Statements 8 requirements YES NO

Contracts Human Resources

Customer Agreements 2 requirements YES NO Employee Agreements 5 requirements YES NO

Property Leases 2 requirements YES NO Employee Register 7 requirements YES NO

Service Agreements 5 requirements YES NO HR Policies and Plans 6 requirements YES NO

Software Licenses 3 requirements YES NO Organization Chart 5 requirements YES NO

Supplier Agreements 2 requirements YES NO Information Technology

Corporate IT Systems Description 6 requirements YES NO

Board Meeting Documentation 4 requirements YES NO Insurance

Business Plan and Strategy 3 requirement YES NO Insurance Policy Documentation 2 requirements YES NO

Company Constitution 1 requirement YES NO Insurance Policy Register 6 requirements YES NO

Corporate Structure 6 requirements YES NO Intellectual Property

Directors and Officers 4 requirements YES NO IP Asset Register 9 requirements YES NO

Group Structure Chart 2 requirements YES NO IP Disputes 5 requirements YES NO

Incorporation and Registration

3 requirements YES NO Legal
Information
Compliance Policies and
Jurisdictions Operating 5 requirements YES NO 8 requirements YES NO
Procedures
Consents, Approvals, and Licenses
Jurisdictions Registered 2 requirements YES NO 6 requirements YES NO
Register

Market Assessment 2 requirements YES NO Correspondence with Authorities 5 requirements YES NO

Litigation, Disputes, and

Shareholder Agreements 3 requirements YES NO 6 requirements YES NO
Complaints

Shareholder Register 4 requirements YES NO

Related Party Arrangements 11 requirements YES NO

ansarada.com
Operations
“Ansarada speeds up
the process of M&A
Key Performance Metrics and
Reports
6 requirements YES NO as you don’t have to
send documents to
Marketing Plan 10 requirements
every potential investor
YES NO

Products and Services or bidder and that saves

Products and Services
a lot of time”
2 requirements YES NO
Documentation Huang Jianqian, BDA Partners
Tangible Assets

Asset Valuation Assessments 3 requirements YES NO

Fixed Asset Register 18 requirements YES NO

Tax

Income Tax Returns 5 requirements YES NO

lntercompany Transactions 5 requirements YES NO

Tax Agreements 2 requirements YES NO

Tax Authority Correspondence 4 requirements YES NO

Transactional

Information Memorandum 1 requirement YES NO

Management Presentations 5 requirements YES NO

Transactional Financial Models 3 requirements YES NO

ansarada.com
Part 5.
M&A: Company Sale/
Exit Pathway
Prepare in a
Pathway, execute
in a Virtual
Data Room
Ansarada’s M&A: Company
Sale/Exit Pathway is
a digitized checklist
for your exit strategy.
Containing all the critical
documentation that
ensures a company is
healthy and prepared
for sale, this exit strategy
business plan template
is built off insights
from more than 35,000
transactions run through
the Ansarada platform.
All you need to do is upload your
documentation into a single, secure
platform, where you can collaborate,
set up automated workflows, and
assign accountabilities and deadlines.
Then, when it’s time for an exit, this
same information is structured and
ready to transfer seamlessly into the
Virtual Data Room for a swift execution.
Ansarada’s Virtual Data Room
incorporates world-first artificial
intelligence and machine learning
to give you unparalleled insights into
the deal and maintain momentum
throughout. Purpose-built Q&A
functionality, AI tools and advanced
security features give you all the
confidence that every facet of
information is governed, protected
and tracked, and ensure that risk in your
process remains at an ultimate low.
“The scorecard in
Pathways is an absolute
game-changer, particularly
for companies that might
need a bit more education
around the sale process.
Just having them be able
to assess where they’re
at in their preparedness
for an exit; it makes our
job a lot easier. We can
focus on what we need to
do to get a great outcome
for the client, with full
confidence that they have
visibility on where they’re
at on that journey, so that
when we decide to pull
the trigger, we’re ready
to hit the ground running.”
Alex Jordan, Partner at Deloitte
ansarada.com

The Ansarada
Business Exit Checklist
Get started with a free
trial of the M&A: Company
Sale/Exit Pathway and use
it to automate and simplify
the preparation for your
business exit process.
Your best exit
plan is readiness
for any and
all possible
outcomes
Watch your score progress towards
100% to signify both optimum
business health and total readiness
for an exit or sale, so you can maximize
business value and achieve the best
outcome possible.
Start my free trial
ansarada.com
We are big thinkers, with a
big vision for a world where
every business, during
every critical decision,
is always ready to act.
It’s born out of an absolute
belief in companies and
the people who found,
run and advise them.
We are on a mission
to achieve this with our
SaaS platform and world
class team who are based
all around the globe.
Let us help
you protect
and raise
your potential
Ansarada is a founder-led, fast- Now you can Always
growth, global technology company. Be Ready For: Mergers
Established in 2005, Ansarada has & Acquisitions, Exits,
helped governments and the world’s Divestments, IPO and
leading investors, advisors and What’s Next...
corporates manage over 35,000
deals across tenders, gateway reviews, Contact us today
M&A, IPOs, fund raising and secure
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Ansarada has helped governments
on over $400b of major infrastructure
projects across major roads, public
transport, ITC, health, education, social
housing, prisons, ports, and utilities
sectors on processes ranging from
the tens of millions to tens of billions
of dollars in value.
Our team is really the core of who we
are though and we are proud to have
made the list of Australia’s Best Places
to Work for the last nine years and
Australian Financial Review’s Top 100
Most Innovative Companies.