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The High Costs of Your Exit Strategy Whether it's a divorce or an M&A transaction, divesting can have lasting effects

By Steph Wagner

This story appears in the October 2015 issue of Entrepreneur. Subscribe »


In my prior life as an investment banker working in M&A, my objectives for any client were strictly transaction-based: Prepare the company for the sale, go to market and close a deal that puts the greatest amount of after-tax dollars in the owner's pocket. I paid little (if any) attention to what happened to the client afterward.

It wasn't until I began working as a financial strategist for a number of people going through divorce that I gained a new perspective. After all, a divorce is essentially an M&A transaction, a divestiture of two entities that once merged. In both cases, a successful transaction is one that maximizes the net proceeds to the individual and preserves his/her net worth long after the court documents are filed.

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