Preparing your private company for an exit: A board’s role

Private company board members have important questions to ask in fulfilling their strategic oversight duties related to when and how a future exit plan should be executed.

A newly published Grant Thornton LLP whitepaper explores these issues in-depth. In the current environment, high inflation and rising interest rates are creating new challenges for private companies in their operations, but they also have the potential to affect merger and acquisition opportunities. With this in mind, one of the top objectives of a private company should be to enable long-term value creation that can lead to higher valuation.

With that in mind, in the current economic environment, boards can:

View through an industry lens. Boards can direct management to focus on the macroeconomic trends that are specific to their industry to identify challenges and opportunities that can affect valuation.
Focus on capital opportunities. It’s important to advise company leaders on how to continue getting access to capital as the investment landscape tightens.
Strengthen the workforce. A board has key responsibilities in prioritizing human capital, which has emerged in recent years as an increasing differentiator in the value of companies.
Remember tax impacts. Boards can check to confirm that management is keeping in mind the tax implications of all its strategies, including its exit strategy.

The turbulence of the past few years has resulted in an expansion of board members’ duties. These are likely to be heightened even more when a company is considering an exit. Thoughtful engagement and oversight at this time – and pursuing the right strategies – can lead to better valuation results and smoother processes that will benefit the company and its people.

Contacts:

Nichole Jordan

Regional Managing Principal, Texoma,
Grant Thornton Advisors LLC,

Partner, Grant Thornton LLP

Nichole Jordan is Grant Thornton’s regional managing principal for its Texoma region, and an inclusive leader dedicated to building a diverse and equitable culture of belonging.

Dallas, Texas

+1 212 624 5310

Industries

Asset management
Banking
Private equity

Service Experience

Audit & Assurance

Eric Gonzaga

Principal, Human Capital Services
Grant Thornton Advisors LLC

Eric Gonzaga is a Principal and practice leader for the Human Capital Services (HCS) group in Minneapolis.

Minneapolis, Minnesota

+1 612 677 5336

Industries

Construction & real estate
Healthcare
Technology, media & telecommunications
Not-for-profit & higher education

Service Experience

Tax
Human Capital Services

Priya Sarjoo

National Managing Principal, Risk Advisory Services,
Grant Thornton Advisors LLC

Priya Sarjoo provides accounting, internal controls and business process improvement within a variety of industries, including financial services, manufacturing, distribution, consumer and industrial products, government, not-for-profit, and hospitality. Sarjoo helps her clients with improving operational efficiencies, enhancing monitoring mechanisms, streamlining management reporting systems, developing and implementing internal audit functions and processes, and evaluating internal controls environments.

Dallas, Texas

+1 214 283 8166