Private company board members have important questions to ask in fulfilling their strategic oversight duties related to when and how a future exit plan should be executed.
A newly published Grant Thornton LLP whitepaper explores these issues in-depth. In the current environment, high inflation and rising interest rates are creating new challenges for private companies in their operations, but they also have the potential to affect merger and acquisition opportunities. With this in mind, one of the top objectives of a private company should be to enable long-term value creation that can lead to higher valuation.
With that in mind, in the current economic environment, boards can:
- View through an industry lens. Boards can direct management to focus on the macroeconomic trends that are specific to their industry to identify challenges and opportunities that can affect valuation.
- Focus on capital opportunities. It’s important to advise company leaders on how to continue getting access to capital as the investment landscape tightens.
- Strengthen the workforce. A board has key responsibilities in prioritizing human capital, which has emerged in recent years as an increasing differentiator in the value of companies.
- Remember tax impacts. Boards can check to confirm that management is keeping in mind the tax implications of all its strategies, including its exit strategy.
The turbulence of the past few years has resulted in an expansion of board members’ duties. These are likely to be heightened even more when a company is considering an exit. Thoughtful engagement and oversight at this time – and pursuing the right strategies – can lead to better valuation results and smoother processes that will benefit the company and its people.
Contacts:
Nichole Jordan
Regional Managing Principal, Texoma,
Grant Thornton Advisors LLC,
Partner, Grant Thornton LLP
Nichole Jordan is Grant Thornton’s regional managing principal for its Texoma region, and an inclusive leader dedicated to building a diverse and equitable culture of belonging.
Dallas, Texas
Industries
- Asset Management
- Banking
- Private Equity
Service Experience
- Audit & Assurance
Eric Gonzaga
Principal, Human Capital Services
Grant Thornton Advisors LLC
Eric Gonzaga is a Principal and practice leader for the Human Capital Services (HCS) group in Minneapolis.
Minneapolis, Minnesota
Industries
- Construction and Real Estate
- Healthcare
- Technology, Media and Telecommunications
- Not-for-profit and Higher Education
Service Experience
- Tax Services
- Human Capital Services
Priya Sarjoo
National Managing Principal, Risk Advisory Services,
Grant Thornton Advisors LLC
Priya Sarjoo provides accounting, internal controls and business process improvement within a variety of industries, including financial services, manufacturing, distribution, consumer and industrial products, government, not-for-profit, and hospitality. Sarjoo helps her clients with improving operational efficiencies, enhancing monitoring mechanisms, streamlining management reporting systems, developing and implementing internal audit functions and processes, and evaluating internal controls environments.
Dallas, Texas
Industries
- Banking
- Healthcare
- Hospitality and Restaurants
- Manufacturing, Transportation and Distribution
- Not-for-profit and Higher Education
- Construction and Real Estate
- Retail and Consumer Brands
Service Experience
- Advisory Services
- Risk, Compliance & Controls
Candice M. Turner
National Managing Principal, M&A Tax Services,
Grant Thornton Advisors LLC
Candice Turner is a principal in the M&A Tax Services group and serves as the business line leader for the Northeast Region.
New York, New York
Industries
- Construction and Real Estate
- Insurance
- Asset Management
- Retail and Consumer Brands
- Private Equity
Share with your network
Share