If you anticipate selling your business in the next 12-24 months, then now is the time to begin with the end in mind starting with repositioning and future-proofing the company’s business model as well as exploring tax, estate, and succession planning strategies.

Why is this important? Planning your taxes and estate may seem like an activity reserved for when the transaction process is close to ending. However, if you wait until shortly before the deal is expected to close, you’ll lose the opportunity to take advantage of trust and estate options as well as various tax exemptions. These exemptions reduce your capital gains tax bill and make more of your earn out potential available to you and your beneficiaries.

Though Katalyst Point is neither a tax nor wealth advisor, we represent founders and owners preparing to go through transactions that result in a significant financial life event. Because we want our clients to get the best financial outcome possible, we always recommend our clients work with competent tax & estate planning advisors prior to confidentially marketing the transaction.

We are well-connected to the best wealth strategists and more than happy to recommend a few advisors.

We understand that deciding to sell your business or bring in a growth partner can be a very challenging and emotional decision. It's a pivotal moment that deserves careful consideration. Many founders and business owners feel a tremendous weight of responsibility towards their families, employees, customers, and the community they've helped build.

While it's natural to experience stress, anxiety, or frustration during this process, we want to assure you that you don't have to go through it alone. The alternative - staying stagnant - may not be the best course of action in the long run. Here at Katalyst Point, we believe in helping you explore the exit strategy options that benefit everyone involved.

By asking yourself key questions like "Why do I want to sell?" and "What are my personal plans for the future?", you can gain clarity amidst the chaos to make informed decisions. As part of our prepare to exit service offering, we encourage quiet reflection on these questions and more, such as:

• What are your goals for the future of the business?

• What are your hopes for your family and employees following the transition?

• What is the ideal timeline for the transition?

• What are the different exit strategy options available to you?

By understanding your motivations and priorities, we work together to develop a disciplined and data-driven divestiture/transition process that maximizes the business value for you, your employees, and your stakeholders. We'll also help you see the transaction from the other party's perspective, ensuring a win-win situation for everyone involved.

That’s why partnering with Katalyst Point just makes good sense.

As entrepreneurs, operators, strategists, and investment bankers representing entrepreneurs, business owners, and founders of privately held companies, we offer a unique combination of services designed to maximize your business's value and ensure a successful exit strategy. Our expert offerings include a comprehensive market value and deal structure study (1-2 months), the Katalyst Pathway™ (3-month strategic sprint), and a capital advisory service, all tailored to resonate with business owners.

Market Value and Deal Structure Study

Our market value and deal structure study is a strategic planning tool aimed at reducing misalignment on valuation by incorporating direct feedback from potential acquirers and investors. This study includes:

• Information Gathering and Company Assessment: We start by collecting detailed information about your company and its operations.

• Buyer Research and Outreach: We contact 5-10 acquisitive parties and conduct interviews to gather industry trends and value drivers.

• Feedback on Value Drivers: We identify company-specific value drivers that potential buyers are looking for and areas for improvement that could significantly impact the purchase price.

• Hypothetical Value Calculation: We calculate a hypothetical value of your company based on current operations, incorporating direct feedback from potential buyers.

• Deal Structure Insights: We provide anonymized insights into how potential buyers would structure the terms of the deal at closing.

At the end of this study, you receive a detailed report. During a one-hour follow-up consultation, a senior banker will present the findings, discuss actionable strategies to enhance your business's valuation, and assess whether to proceed with selling, building, or growing your business.

Katalyst Pathway™

Katalyst Pathway™ is a game-changing 12-week coaching sprint designed to prepare business owners with ambitious team cultures for a liquidity event. Using best-in-class proprietary frameworks, we incorporate buyer feedback from the market value and deal structure study to ensure stakeholder alignment and position your business from the buyer’s perspective. This program focuses on:

• Stakeholder Alignment: Ensuring all stakeholders are on the same page.

• Positioning the Business: Redefining critical shifts needed to increase business value by up to 40% or more—guaranteed.

• Actionable Strategies: Implementing strategies that enhance your business's valuation.

At the end of the Katalyst Pathway™ program, we reassess the decision to sell, build, or grow using an inquiry-led and evidence-based approach. If the decision is to sell, we initiate an engagement contract to facilitate a comprehensive sale process, from preliminary preparation and going to market to facilitating due diligence, negotiations, and exit. If the decision is not to sell, the next step would be a strategic reset to evolve and future-proof the business model into one that enhances valuation and marketability.

By combining the strategic insights from our market value and deal structure study with the intensive preparation of the Katalyst Pathway™, we ensure your business is optimally positioned for a successful exit, maximizing your rewards and minimizing regrets.

Our Services

Investors and buyers have their eyes on two critical aspects when evaluating a business: a strong and credible growth plan with a proven track record of execution, and an understanding of the company, industry, and market dynamics that could potentially hinder projected growth.

If there is a mismatch between the value of the company and your goals, many business owners assume that achieving business growth and securing a favorable multiple at the time of sale is simply a matter of continuing what has worked in the past. However, without guidance from an investment banker or M&A advisor who can leverage the groundswell of their buyer network, navigating this path can be challenging. This is where having a reliable compass becomes essential.

At Katalyst Point, our mission is to provide entrepreneurs like you with greater confidence in your direction and more options for the future of your business and personal life. We achieve this by amplifying growth opportunities and mitigating risks.

Every business is unique, but most tend to have a narrow focus on their growth strategies. We bring a fresh perspective and a caring approach, encouraging you and your team to see things differently. By incorporating these insights into a comprehensive strategic plan, we propel your business forward exponentially.

We start our journey together by assessing various aspects of your business, including your target market, company maturity, customer base, capital, and cash flow. We ask important questions: How far have you come? How far do you aim to go? What resources will you need along the way?

If you're serious about selling your business for a specific amount, we sit down with you to help you understand the buyer's perspective and guide you through the process step by step. It takes time for us to respectfully learn the nuances of your business—the good, the bad, and the challenges. Our clients view us as trusted allies who are committed to getting the job done. We prioritize people and view your business as a living, breathing entity. We're genuinely excited to help position it for success.

Our approach isn't just about taking your company to market; it's about deeply understanding your business, your identity as owners and founders, your team dynamics, your company culture, the market landscape, and how we can develop an irresistible future-forward exit story. This holistic understanding enables us to guide you toward an efficient yet rewarding path while making your new business journey more fulfilling.

Choosing the right team of professional advisors is arguably the most crucial decision you'll make during any transaction. Your advisory team should not only be immensely helpful and well-connected but also trustworthy and possess profound expertise in M&A transactions. Furthermore, they must recognize the unique qualities that have propelled your company's success and appreciate what sets it apart in the market.

Investing in a meticulously structured process is key, and having seasoned transaction professionals onboard is essential. This includes an experienced M&A banker, a proficient M&A attorney, an esteemed accounting firm, and a knowledgeable wealth advisor well-versed in estate tax planning, as a minimum requirement. Depending on your company's specific needs, we leverage our extensive network of transaction partners, which may include family therapists, marketers, brand strategists, HR executives, and tech advisors. This collaborative approach allows us to pool diverse perspectives and collectively brainstorm innovative strategies to execute the strategic plan effectively from start to close to day one transition.

By assembling such a comprehensive and well-rounded advisory team, we set the tone from the outset that your business is of premium quality and well-positioned for a successful transition. This not only instills confidence in potential buyers but also ensures that every aspect of the transaction is handled with the utmost care and expertise.

Cost: Projected M&A Fees

At Katalyst Point, we understand that a successful M&A transaction hinges on identifying the ideal buyers and investors. Our "Best Buyers" program goes beyond traditional methods, offering a comprehensive and meticulous pre-marketing phase, followed by a strategic buyer list building and communication approach. This ensures you connect with the most qualified acquirers, maximizing value and minimizing disruption throughout the entire M&A process.

Phase 1: M&A Pre-Marketing - Laying the Foundation for Success

• Deep Dive Due Diligence: We conduct a thorough internal analysis of your company, uncovering its unique value proposition, financial health, and growth potential. This forms the bedrock of our buyer-facing narrative.

• Market Intelligence Gathering: Our team meticulously researches the M&A landscape, identifying potential acquirers with a strategic interest in your industry, size, and market position.

• Competitive Advantage Framing: We craft a compelling story that highlights your company's distinct advantages and how it aligns perfectly with the strategic goals of targeted buyers.

Phase 2: Building the Buyer List - Identifying the Ideal Partners

• Targeted Approach: Our extensive industry network and access to M&A databases allow us to curate a customized list of highly qualified acquirers who possess the resources and vision to unlock your company's full potential.

• Quality over Quantity: We prioritize a focused group of pre-vetted buyers who demonstrate a strong strategic fit, financial strength, and a proven track record of successful acquisitions.

• Confidentiality Assured: We maintain the utmost discretion throughout the process, ensuring a cloak of secrecy to protect your sensitive information during the pre-marketing phase.

Phase 3: Facilitating Communication - Streamlining Buyer Interaction

• Strategic Outreach: We initiate targeted communication with each buyer, crafting introductions that pique their interest and effectively communicate the value proposition you offer.

• Managing the Deal Flow: Our team serves as the central point of contact, facilitating efficient communication between you and potential acquirers, keeping the M&A process moving forward smoothly.

• Preparation and Support: We equip you with the knowledge and resources necessary to confidently navigate buyer inquiries and presentations, ensuring a polished and professional presentation.

From Pre-Marketing to Close - Your Trusted Partner Throughout the M&A Journey

Our "Best Buyers" program not only identifies the most compelling acquirers, but fosters a collaborative environment that facilitates open communication and informed decision-making. By entrusting us with managing the pre-marketing and buyer communication phases, you can concentrate on running your business with the peace of mind of knowing we're securing the most advantageous deal possible.

Contact us today to learn more about how we unlock the full potential of your company prior to going to market.

Due diligence serves two critical functions in the process of selling your business. First, it allows the buyer to validate their assumptions about the business. Second, it lays the groundwork for integration post-transaction.

Typically, the due diligence process begins with an extensive request list from the buyer, outlining hundreds of documents and reports for review. The buyer and their advisors meticulously examine these materials, scheduling follow-up calls to delve deeper into areas of concern or ambiguity.

For instance, buyers often scrutinize the accounts receivable aging, seeking clarification on overdue accounts and their collectibility. A thorough due diligence process, facilitated by prepared sellers who’ve invested in positioning and reinventing their business (Steps 4. and 5.) and experienced buyers, typically spans 30-60 days. However, disorganization or inexperience can extend this timeline to 90-120 days or more.

Throughout our extensive experience in hundreds of transactions, clients consistently express surprise at the depth and complexity of the due diligence process. While due diligence can be challenging and time-consuming, we prepare prior to going to market and during the sale process provide expert counsel and unwavering 24/7 support to ensure a smoother journey, safeguarding your interests every step of the way.

Taking the time to meticulously assess and evolve your company prior to exiting at peak value can significantly enhance the sale of your business.

Steps 4 (assess your business) and 5 (evolve your business) are integral to ensuring a smooth and less stressful selling process.

While financial valuation is crucial, it's essential to recognize that it extends beyond mere numbers. Skillful negotiation and leveraging are paramount in securing the right price and terms of the deal, ultimately maximizing the value of the hard work done prior.

At Katalyst Point, we leverage our global network of buyers, unparalleled Wall Street transaction expertise, and finely tuned marketing tactics to ensure that you receive the best possible price for your company. Our track record speaks volumes, with an average post-LOI close rate of 90%+. In other words, when you entrust us with your business, you can rest assured that it's in capable hands.

Our approach involves crafting a personalized path to market, allowing us to anticipate and address potential challenges before they arise. By meticulously planning for exit, we mitigate risks and minimize obstacles along the journey to a successful transaction.

We understand that investors and strategic buyers are eager to uncover what makes your business uniquely valuable, which is why we take great care in articulating your story and highlighting its strengths.

Moreover, we go above and beyond to source buyers, reaching beyond the usual suspects to find the perfect match for your company. Throughout the due diligence process (Step 6) and any other obstacles that may arise, we provide expert counsel and unwavering 24/7 support.

With Katalyst Point by your side, you can navigate the complexities of selling your company with grace and confidence, knowing that every detail is being handled with care and expertise.

Selling your business represents the culmination of years of dedication and hard work—a milestone that underscores your sacrifices, achievements, and legacy. As negotiations end and purchase agreements are finalized, the journey towards closing the deal is a pivotal moment, signifying the transition into a new chapter that allows you to thrive on your terms.

Starting with a clear vision of the end goal (begin with the end in mind), it's crucial to proactively engage with a team of wealth advisors—tax, estate, insurance, and others—who collaborate with you before, during, and after the transaction. Together, they help safeguard your financial well-being and preserve your legacy for generations to come.

With the sale of their business, Katalyst Point helps our entrepreneur customers pursue their philanthropic passions and act as wise elders to the next generation of entrepreneurs.

Through our Prosperity Beyond Profit™ tenet, we join in by donating 1 percent of each deal’s success fees to worthy organizations our clients select.

Learn more about our values.