The Operational Buyout. Exit on Your Terms.
A structured, self-funding exit strategy for owners ready to step back immediately.
The Exit Dilemma Finding a traditional buyer for an SME can take years, and often deals fall through due to financing issues or lack of operational continuity. Many owners are stuck running a business they are ready to leave. Kenekt provides a guaranteed alternative: We become your operator and your buyer.
How the "Earn-In" Model Works We don't just advise on the exit; we execute it. Our model is simple but powerful
- Valuation: We agree on a fair Purchase Price based on current performance.
- Operational Takeover: Kenekt takes full operational control. You step back from day-to-day management immediately.
- Performance & Payout: We use our expertise to optimize operations and generate profit.
- Equity Conversion: These profits are paid to you over a fixed period and simultaneously convert into equity for us.
- Immediate Freedom: You are freed from the daily grind immediately, not in 2 years when a buyer might appear.
- Legacy Preservation: Unlike a competitor who might strip the assets, we are incentivized to grow the brand and retain your staff because our equity depends on its success.
- Maximize Value: Because we are confident in our ability to improve margins, you often realize a higher total value than a distressed sale.
Frequently Asked Questions
A PE buyer typically requires management to stay on, imposes governance structures, and has a defined 3 to 5 year hold period before a secondary sale. The Earn-In model is for owners who want to exit operations immediately. You agree a purchase price upfront, step back on Day 1, and receive your payout over a structured period as Kenekt drives operational improvement.
We use an IVS-compliant business valuation to establish a fair baseline purchase price based on current financial performance. Both parties agree this price before any operational transition. Full transparency on the model mechanics is provided before any commitment is made.
Best suited for businesses with stable or growing revenue, an established customer base, revenues between AED 5 million and AED 100 million, and operations that can function without the founder's daily involvement. Typical sectors: professional services, distribution, retail, light manufacturing, and hospitality.
Staff continuity is a core part of every Earn-In transition plan. We do not restructure for the sake of it. Operational stability is what protects the value you are being paid for. Any changes to the team are discussed and agreed with the exiting owner before the transition date.
The payout structure accounts for this. The final valuation and payment schedule are set contractually before the transition but can include performance-linked components where both parties agree. We walk you through every scenario in detail before any document is signed.
