Often, the difference between a deal that generates exceptional returns and one that disappoints depends on the forethought, positioning, and execution that go into developing a strong exit strategy. Our work has found that the most successful exits occur when private equity firms plant the seeds early. Forward-looking firms cultivate new profit improvement opportunities and jump start future growth for the next set of owners to harvest.

Bain helps clients achieve maximum returns from their exits through a four-step process:

• Positioning for performance, by identifying the most attractive growth opportunities and putting the company on a path to achieve them.
• Evaluating the optimal exit approach, whether it is an initial public offering, a merger with a strategic acquirer, a sale to new private equity owners, or a management-led leveraged buyout. We assess the industry trends, business cycle timing, and equity market conditions pertinent to the firm.
• Preparing the selling documents, to facilitate due diligence by prospective buyers or support the competitive and financial analysis required in a prospectus for a public or private listing.
• Pre-qualifying buyers and customizing the sales approach, that identifies potential acquirers and, through a "reverse due diligence" process, anticipates their needs, concerns and capabilities and how best to address them.

To find out more about Bain's work in this capability area, please contact the practice.