Cybersecurity Services Deals: Exit Preparation Done Right
When the deal is cybersecurity services and the question is Exit Preparation, the structure decisions in the first 30 days outlast the next five years. This is where Jason Powell works.
An independent sponsor closing cybersecurity services transactions in the $10M to $130M EV range has a defined set of moves at the Exit Preparation stage. Most of them are not in a generic M&A textbook.
The typical cybersecurity services platform sits at $10M to $130M EV with EBITDA in the $2.5M to $22M range. The thesis runs on MSSP or specialty consulting platform. Cleared workforce is the moat. Cleared workforce can also be the deal-killer in CFIUS reviews.
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 cybersecurity services, layer in FSO succession plan in place 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.
The capital that opens up post-close, from refinancing to growth equity to strategic exit, runs through a small set of Wall Street relationships. That network is built in.
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Bring the cybersecurity services deal. Get Exit Preparation done right.
Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.