Exit and Succession Planning:
Many owners plan to exit their business in the next 5 to 10 years. Succession planning is inevitable for any business, and preparation is critical. Lantern Capital Advisors helps companies identify, evaluate, explore, and execute owner exit strategies. Preparing is wise, in case an unsolicited offer or a sudden change in circumstances (health, death, divorce) dictate the need for a sale or restructuring of capital.
Issues and pre-planning such as income tax and estate planning, company valuation and pricing, preliminary financial restructuring, and operational initiatives can all enhance the valuation and ultimately the benefits the entrepreneur receives. By working with Lantern Capital Advisors, our clients are well prepared, and can quickly address options and alternatives presented to them.
A Sale To A Third Party (selling your company to a strategic or financial buyer)
At any one time, approximately 20% of businesses are for sale. Out of that number, only 25% of those businesses sell. In clearer terms, only 5% of businesses are likely to be sold to a third party. Percentages of success increase when revenues exceed $10 million dollars a year. Often times the valuation is higher for these businesses because the company is purchased by a strategic buyer who realizes the “value” of the business, or the company is in a growth market. However, when an owner sells their company to a third party, typically children or employees aren’t protected, company culture changes, and control over decisions for the company are eliminated.
Sometimes these opportunities appear out of the blue, and a competitor or strategic buyer has inquired about the entrepreneur’s interest in selling the business. Lantern Capital Advisors can quickly put together an overview of the business and the financials in order to present to the inquiring entity.
In addition, as corporate financial advisors, Lantern Capital Advisors helps companies evaluate the offer, investigate alternatives, and determine the best solution for the business owner. Because we offer our services on an hourly, consulting model basis, our compensation is based on our time, and not a percentage of the value of the business.
Read Our Corporate Finance Blog Post: Owner Exit Strategies
Companies routinely drive growth by asking then exploring, “What if?” But for questions like those listed above, effectively exploring “what if” requires an understanding of corporate finance that many private companies do not have.
What We Do: Corporate Financial Planning For Growing Companies. Helping Companies Explore Their “What if?” Lantern Capital Advisors helps business owners evaluate growth and financing strategies to build greater value and understand the pros and cons of many different exit strategies and alternatives.
Lantern Capital Advisors uses a proprietary planning consulting process to help companies quickly evaluate opportunities, then develops the plans and accesses the capital to make it happen. Lantern Capital Advisors offer a unique combination of experience, objectivity, and value.
- Experience - We are a corporate financial consulting firm. All we do is help growing companies explore, plan, and execute business and financial strategies to realize their potential.
- Objectivity - Fees for most corporate finance advisors are determined by the strategies or products they recommend. As a corporate finance consulting firm, we work on an hourly consulting basis, so clients can always trust our advice. Our objective is to develop corporate finance strategies and finding financing alternatives that allow owners and management to maintain control of their company and preserve equity.
- Value - We deliver our corporate financial planning and consulting services using a proprietary planning process that is highly effective, and gives clients and management peace of mind, consistent results, and delivers substantial value at a fraction of the cost of our (investment banking) competition.