Exit · B2B Services

Exit Preparation for B2B Services Independent Sponsors

Preparing Exit Preparation on B2B services deals, with the structure protection and capital connectivity an independent sponsor actually needs.

EV range $8M to $90M EV EBITDA $2M to $18M Audience Independent Sponsor
The deal context

Every B2B services acquisition has its own gravity. Exit Preparation is the workstream where independent sponsor counsel earns the seat.

The typical B2B services platform sits at $8M to $90M EV with EBITDA in the $2M to $18M range. The thesis runs on recurring revenue service platform with bolt-on operators. Most B2B services deals look better in the CIM than in the data room. Skip the CIM, ask for the contracts.

The moves

How Exit Preparation actually gets structured.

  1. Clean the cap table 18 months before the planned exit window.

  2. Refresh the IP, employment, and customer contract files for diligence readiness.

  3. Build a quality-of-earnings ready financial package well before bankers come in.

  4. Coordinate sponsor exit economics with the LP waterfall and any rolled-equity holders.

  5. In B2B services, layer in MSA assignability mapped customer-by-customer as part of the Exit Preparation workstream.

The common mistake

Starting exit prep when the banker calls. By then, every fix costs price.

Jason's take
"Exit prep is what separates a 6x outcome from an 8x outcome. The work starts before the banker."
Jason Powell · Exit Preparation
Capital after close

The deal is one thing. The capital that opens up after close is another.

Most independent sponsors solve the closing capital and then run into the post-close capital problem alone. The capital markets relationships that matter at month 18 are part of this practice.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
TALK TO JASON

An LOI on the desk, a B2B services target, and a Exit Preparation question worth a real conversation.

Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.