The best thing sellers can do is improve their own business so they can quickly launch an IPO or M&A transaction when markets rebound.
In recent months, many smaller, emerging growth companies have been forced to delay and reconsider their exit plans while waiting for market conditions to become more favorable. Macroeconomic uncertainty and falling valuations have made these companies’ typical exit paths of an IPO or M&A deal more difficult.
However, in a new report, How private companies can plan for an exit in a downturn, KPMG explains that the current lull in market activity offers a timely opportunity to pursue transformational change ahead of an exit. In fact, dual tracking—or preparing for an exit through an IPO and M&A transaction simultaneously—can be a useful tactic for the seller to attract even more interest from potential acquirers when the economic sentiment turns positive again.
How private companies can plan for an exit in a downturn
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