From grimoire
Guides through exit strategy planning: M&A, IPO, PE recap, or secondary sale. Helps with business valuation, buyer positioning, and deal process.
How this skill is triggered — by the user, by Claude, or both
Slash command
/grimoire:design-exit-strategyThe summary Claude sees in its skill listing — used to decide when to auto-load this skill
Evaluate exit options (M&A, IPO, secondary sale, PE recapitalization), optimize company positioning, and execute the highest-value exit path.
Evaluate exit options (M&A, IPO, secondary sale, PE recapitalization), optimize company positioning, and execute the highest-value exit path.
Adopted by: Every investment bank (Goldman Sachs, Morgan Stanley, Lazard) runs M&A advisory as a core business. The CFA Institute covers M&A valuation as a required Level II topic. PE firms (Blackstone, KKR) have dedicated exit planning teams; their portfolio companies plan exits 18–24 months in advance. Impact: PitchBook (2023) data shows that companies that run a competitive sale process achieve 15–30% higher valuations than those that accept unsolicited offers. McKinsey research on M&A shows that sell-side preparation (clean financials, audited EBITDA, clear growth narrative) reduces deal close time by 40% and improves final price by 10–15%. Why best: Exit is the terminal event that converts years of value creation into realized proceeds. Without a strategy, founders default to the first offer received — typically below market. A structured approach determines which exit type maximizes value for the founder's specific situation (tax, control, speed), prepares the business to be a compelling acquisition target, and runs a competitive process to establish true market value.
Clarify exit objectives — Answer: What matters most? Maximum price / fastest close / founder liquidity now / maintain operating role / employee outcomes / strategic legacy? Objectives determine the right exit type and which buyers to approach.
Assess exit type suitability:
Value the business — Run three methods and triangulate:
Prepare the business — 18–24 months before target exit:
Run a competitive process — Hire an investment bank or M&A advisor for deals > $10M. Process: teaser → CIM (Confidential Information Memorandum) → management presentations → LOI (Letter of Intent) → exclusivity → due diligence → closing. Competition between multiple bidders is the primary price lever.
Evaluate Letters of Intent (LOI) — Key LOI terms: headline price, structure (cash vs. stock vs. earnout), working capital target, escrow/holdback %, representation and warranty insurance, exclusivity period (typically 45–60 days), employee treatment, transition period.
Optimize tax structure — Asset sale vs. stock sale: buyers prefer asset sales (step-up in basis); sellers prefer stock sales (capital gains treatment). Structure negotiation here can be worth millions. In an asset sale, consider Section 338(h)(10) election for corporate sellers. Consult M&A tax counsel before LOI.
SaaS company, $8M ARR, 25% growth, $3M EBITDA, strategic exit target: Valuation: ARR multiple method: $8M × 12× = $96M. EBITDA method: $3M × 25× = $75M. Comp transactions: $80–110M range. Estimated value: $85–100M. Process: hire M&A advisor; run CIM to 8 strategic buyers + 4 PE firms; receive 5 LOIs; select $98M all-cash offer from strategic with 10% holdback (18 months), 6-month transition. Founder retains none (full exit). Tax: stock sale treatment → LTCG at 20% → net after-tax ~$78M.
Finance disclaimer: This skill encodes professional best practices for educational purposes. It is not financial advice. Consult a licensed financial advisor before making investment decisions.
npx claudepluginhub jeffreytse/grimoire --plugin grimoireStructures a capital raise by determining amount, investor type, terms, and stage to minimize dilution and secure sufficient runway.
Evaluates business decisions for sustainable, profitable growth. Use when making choices about spending, hiring, fundraising, or scaling.
Evaluates business decisions on spending, hiring, fundraising, and scaling through sustainable, profitable growth principles from The Minimalist Entrepreneur.