Providing an exit for the founding shareholders and the new investors is of utmost importance if any business is going to be successful in raising finance.
As part of developing a capital management strategy for our clients, we identify the most probable exit options for both existing shareholders and any incoming investor. This maybe via a gradual reduction in ownership by issuing new shares, a trade sale, a capital buy-back, repayment of debt or even a listing on a public stock exchange.
Whatever the exit strategy we consider it key to the development of any corporate strategy as in most cases it is this end transaction where the benefit of ownership is ultimately realized.
With a large proportion of our client base managing their businesses via family partnerships or trusts succession planning and refinancing the inter generational transfer can be both a daunting and emotionally charged transaction. RARE Partners have the experience to develop suitable capital re-alignment strategies and independent advise to family members around the ongoing management of the business and exit of family members.
Not only do we consider the ongoing operational needs of a business after an exit of key stakeholders, we also try to consider the personal strategies to be adopted by the exiting party to ensure that they are aware of their retirement options and ongoing aspirations. This includes recommending financial planners and considering potential tax consequences of any transaction and its impact on all participants involved.