ADVICE CENTER
30 July 2019

Exit Strategies

FK
Frankfurt Kurnit Klein & Selz

Contributor

Frankfurt Kurnit provides high quality legal services to clients in many industries and disciplines worldwide. With leading practices in entertainment, advertising, IP, technology, litigation, corporate, estate planning, charitable organizations, professional responsibility and other areas — Frankfurt Kurnit helps clients face challenging legal issues and meet their goals with efficient solutions.
Considerations when selling.
United States Advertising and Marketing

EXIT STRATEGIES

A. WHY SELL

  1. Retirement
  2. Cash-out
  3. Resources
    1. Expand
    2. Stay Competitive
    3. Next Level
  4. Transfer Risk
  5. Timing
    1. Growth Cycle
    2. Economy
    3. Personal

B. PRE-SALE PREPARATIONS

  1. Financials
  2. Ownership/Structure
  3. Third Party Agreements
  4. Lock-up Key Talent
    1. Phantom Stock
    2. Equity
    3. Incentivize to Stay
  5. Records

C. EXTERNAL SALE

  1. Valuation
  2. "Script"
    1. Cash
    2. Public Shares
    3. Private Shares
  3. Tax Considerations
  4. Earn-outs
    1. Goals
    2. Control
  5. Merger/Minority Sale
  6. Finding a Buyer
  7. Logistics

D. INTERNAL SALE

  1. Actual Buy-out
  2. Sweat Equity
  3. ESOP
  4. Consulting Arrangements
  5. Employment Arrangements
Take Note
This document is not intended to create an attorney-client relationship. You should not act or rely on any information in this document without first seeking legal advice. This material is intended for general information purposes only and does not constitute legal advice. If you have any specific questions on any legal matter, you should consult a professional legal services provider.

Contributor

Frankfurt Kurnit provides high quality legal services to clients in many industries and disciplines worldwide. With leading practices in entertainment, advertising, IP, technology, litigation, corporate, estate planning, charitable organizations, professional responsibility and other areas — Frankfurt Kurnit helps clients face challenging legal issues and meet their goals with efficient solutions.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More