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Exit Readiness as a Service: is your company ready for the next chapter?

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Whether you are planning to sell your company/business, merge with another company or seek funding, exit readiness is where you should start. When compared to selling an apartment, you want to show the best side of your business and avoid any surprises to get the best possible price in the market. In this blog, I'll explore how exit readiness may affect both your bargaining and commercial position in the exit negotiation phase and how we at Fondia can help you to ensure your business is ready for the next chapter.

When a company is deemed "exit ready" from a legal perspective, it signifies that it has fulfilled all the necessary legal obligations, requirements, and considerations essential for the planned exit. Further, exit readiness aims to ensure that the company’s exit process is legally compliant and to minimize any potential legal risks or liabilities. Exit readiness will, at the outset, enhance your bargaining position and increase your chances of getting the best possible price and deal terms. Companies that are exit-ready have a higher chance of successfully overcoming challenges, which ultimately reduces the risk of failure and increases company value. Further, exit readiness reduces the chances of facing legal challenges or issues post-exit. It should also be noted that VC investors and founders often have different time horizons for their investments. Exit readiness shows that the founders are aligned with the VC investor's objectives as to preparing the company for an eventual exit event.

A buyer's/investor’s lawyers will do their best to detect any deficiencies in the target business during the due diligence phase; often with a view to either negotiating down the price or mitigating the risks in the purchase/investment agreement through specific indemnities for known risks and robust representations and warranties regarding the target company. Of course, it is best to have identified any possible issues in advance and to have everything in order well before the exit process begins.

Fondia’s M&A team offers a flexible and specifically tailored “Exit Readiness as a Service” that provides you with (i) a thorough overview of the current state of your business from a legal perspective and identifies any related potential deficiencies and non-compliances, (ii) the implications of how such deficiencies and non-compliances may prevent a successful exit strategy and (iii) recommendations on what corrective measures are needed in order to make your business exit ready. Our mission is to help you add value, avoid surprises and increase credibility, thereby significantly improving your chances of a rewarding exit.

Our experienced and dedicated M&A team has solid experience from a wide range of various transaction projects – spanning from traditional M&A (both industrial and private equity deals) to venture capital funding rounds. We are approachable and have years of experience in representing and advising various parties, including buyers, sellers, financiers, investors, and target companies. The team is well known for its market knowledge, pragmatic attitude and advice, effectiveness, flexibility and especially its determination to achieve each client’s goals without extra bullshit. With multiple offices in Finland, Sweden and the Baltic countries, we work seamlessly across boundaries also in cross-border transactions. With the support of Fondia’s versatile team of experts you will get all the assistance you will need in your transaction lifecycle – starting from stage zero planning phase to the completion of the deal and beyond. Our business-minded and holistic approach, including our Legal Department as a Service (LDaaS) service model, serves well for any crucial post-transaction integration needs.