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.
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.
How Exit Preparation actually gets structured.
Clean the cap table 18 months before the planned exit window.
Refresh the IP, employment, and customer contract files for diligence readiness.
Build a quality-of-earnings ready financial package well before bankers come in.
Coordinate sponsor exit economics with the LP waterfall and any rolled-equity holders.
In B2B services, layer in MSA assignability mapped customer-by-customer as part of the Exit Preparation workstream.
Starting exit prep when the banker calls. By then, every fix costs price.
"Exit prep is what separates a 6x outcome from an 8x outcome. The work starts before the banker."Jason Powell · Exit Preparation
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.
Related deal pages.
Transaction Fee Structuring for B2B Services
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Working Capital Adjustments for B2B Services
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Representation & Warranty Insurance for B2B Services
A buyer-side insurance product covering breach of seller representations, reducing seller escrow and indemnit…
Indemnification for B2B Services
The seller's contractual promise to compensate the buyer for breaches of representations, covenants, and spec…
Exit Preparation for Healthcare Services
roll-up of physician practices and ancillary service lines
Exit Preparation for Home Services
regional roll-ups of HVAC, plumbing, and electrical operators
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.