An important truth to understand as a business owner in the A&D industry is that your company won’t stay in your hands forever. Be it two years from now, or in the distant future, there will likely come a time when you will want to pass off the reins on your own terms. Preparing for a business hand-off is called exit planning – a systematic approach that is designed to maximize your enterprise value, among other objectives. An exit planner is a specially trained consultant who can help make your business both more attractive and more valuable in eyes of prospective buyers.
Enter High Stakes Partners, a team of highly experienced defense advisory experts who proudly provide a wide array of exit planning services for defense contractors. We have a long history of helping business founders and C-suite executives transform challenges into opportunities in the realm of enterprise value enhancement. Being skilled entrepreneurs with an impressive track record in the federal government space, we at High Stakes Partners have the business savvy necessary to implement the most effective exit planning strategies for you. Our ultimate objective is to help you achieve your exit goals while also laying the groundwork for the continued success of the business.
Exit Planning Options
Choosing to walk away from a business presents many options with respect to structuring a lucrative transfer. The following is a brief look at a few of the exit planning strategies that we help defense contractors pursue:
An increasingly popular exit planning strategy for many in the A&D sector is selling to a private equity group. High Stakes Partners will be pleased to explain this trend to you in more detail and help you explore whether private equity is a suitable opportunity.
Creating an employee stock ownership plan – or ESOP – is another exit planning option you might want to consider. An ESOP will allow you to sell part or all of your business to your employees. This can be an attractive exit strategy as it eliminates the risk of having to wait months or years for a buyer.
Together, we can also weigh the advantages of selling your business to a strategic buyer. An example of a strategic buyer would be one that is already in the aerospace and defense industry that is looking to incorporate your business into their operations.
It may be the case that, right now, you desire to keep working but also want to have less of an ownership stake. Many of our clients find themselves torn between the invigorating challenges of company stewardship and the lure of a comfortable retirement. At High Stakes Partners, our exit planning services can show you the various ways to take chips off the table while continuing to do the work you love. Pursuing a so-called partial exit may even help ensure the survival and eventual full transfer of the business.
A Word About Leadership Succession Planning
Related to, but also distinct from, the concept of exit planning for defense contractors is leadership succession planning. The latter generally involves identifying and grooming new company executives who can ensure business continuity should there ever be a change in ownership. Preparing a select few to assume leadership roles when the need arises has many advantages. For example, developing a succession plan can help you retain your highest performing employees and motivate them to prepare for their critical future roles.
The team at High Stakes Partners sees leadership succession planning frequently as a vital piece of the overall exit strategy puzzle and will be happy to speak with you about it in more detail.
Contact Us Today
There is no better way to get the exit planning ball rolling than to reach out to High Stakes Partners and start a conversion. We are passionate about business and would embrace the opportunity to assist you with all of your exit planning needs.
We invite you to contact High Stakes Partners to learn more about the exit planning options available for your aerospace or defense company.