7 Reasons To Reconsider A Planned IPO Exit Strategy

Startup Professionals Musings

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to stay low, I still hear it touted often as the preferred exit strategy. Concerns over valuations being reset to a new normal, and a soft exit market, are seen as key drivers. Yet I believe the trend will continue flat as entrepreneurs become more aware of other considerations that make the IPO route less and less attractive. alibaba exit strategy IPO startup

Here is Why You Need a Good Startup Exit Strategy

Startup Professionals Musings

If you startup is your dream, why would you want to think about an exit? There are two very real and practical reasons why you need to plan an exit: Outside investors want to collect their return. Entrepreneurs love the art of the start. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A). Even lifetime entrepreneurs can decide that enough is enough.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

How To Formulate A Founder Exit Strategy

YFS Magazine

At the end of the day, some entrepreneurs simple don’t want to bother thinking about this sort of stuff. Lead business exit plan exit planning exit strategy startup exits succession planningAfter all, very few of us would like to go into a new business venture visualizing our own imminent departure.

Planning for the Future: Your Exit Strategy

Up and Running

Even if an island in the Maldives isn’t in the cards, if you’re seeking outside investment, an exit strategy is essential. What is an exit strategy? An exit strategy is a method by which entrepreneurs and investors, especially those that have invested large sums of money in startup companies, transfer ownership of their business to a third party, or by which they recoup money invested in the business. Who needs an exit strategy?

An IPO Exit Strategy Puts the Entrepreneur at Risk

Startup Professionals Musings

Many entrepreneurs still dream of “going public,” making billions of dollars, and playing with the big boys. I recently reviewed a good summary of the advantages and disadvantages of an IPO exit strategy for startups in a widely-used textbook “ Entrepreneurship ,” by Robert Hisrich, Michael Peters, and Dean Shepherd. Their synopsis of the key risks should make you look hard for an alternate exit strategy: Increased risk of liability.

What Startups Need to Know About Exit Strategies

Up and Running

The exit strategy isn’t about you, it’s about your investors. Startups looking for angel investors or venture capital (VC) absolutely need an exit strategy because investors require it. The exit is what gives them a return. Exit strategies related to startup funding are quite often misunderstood: The “exit” in exit strategy is for the money, not the startup founders or small business owners.

Simple Need-To-Know on Exit Strategies

Up and Running

What’s an exit strategy? Lately I see a lot of people assuming it refers to the original entrepreneurs who started the company. And I once heard one person object to exit strategy as a company moving away from its original location to some other. It was in my mind over the weekend after some smart people objected to exit strategies in plans for investors. Investors always want exit strategies, I said. What exits is the money.

How To Know It’s Time To Exit Your Company Gracefully

Startup Professionals Musings

For most entrepreneurs, their current business is not where they intend to stay until they die. At the right time, they all intend to make a graceful exit, and leave while still perceived to be on top of their game. Graceful exiters. Graceful exiters remain curious.

6 Strategies For Startup Exit That Investors Accept

Startup Professionals Musings

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Yet one of the first things a potential equity investor asks about is your exit strategy. Startups with no exit planned will minimize investor returns. No exit.

7 Costs To Consider Before Taking Your Startup Public

Startup Professionals Musings

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to stay low, I still hear it touted often as the preferred exit strategy. Most startup founders voluntarily exit or are pushed out, and the fun is gone.

Cost 252

Planning for Retirement? Remember These Basic Principles

YFS Magazine

However, 34 percent of entrepreneurs don’t currently have any retirement savings plan. Exit Strategy Grow business finance exit planning money management personal finance small business retirement plansRetirement planning is vital.

333 Million Reasons to Have an Exit Strategy Plan

Growthink Blog

As an entrepreneur, I want you to understand just why Shutterfly paid $333 MILLION to buy Tiny Prints. The process of preparing your company for sale is called "exit strategy planning." We recently formalized our exit strategy planning consulting service. Shutterfly Inc. NASDAQ:SFLY) recently agreed to pay $333 million in cash and stock to acquire Tiny Prints Inc., the online seller of personalized cards, invitations, stationery and photo books.

8 Steps to Exit Your Startup With Pride And Profit

Startup Professionals Musings

Once an entrepreneur, always an entrepreneur. Although many won’t admit it, true entrepreneurs can’t wait to exit their current startup, and build a new and better one with their next great idea. In addition, current investors want to see every startup go public or be acquired, as an exit event, so they can get their due return for that investment which has been tied up for the last few years. At minimum, you need to get an exit advisor to keep you on course.

Real Entrepreneurs Exit If Their Startup Goes Public

Startup Professionals Musings

Many entrepreneurs still dream of “going public,” making billions of dollars, and playing with the big boys. I recently reviewed a good summary of the advantages and disadvantages of an IPO exit strategy for startups in a widely-used textbook “ Entrepreneurship ,” by Robert Hisrich, Michael Peters, and Dean Shepherd. Their synopsis of the key risks should make you look hard for an alternate exit strategy: Increased risk of liability.

8 Indications Of A Real Entrepreneur Versus A Hacker

Startup Professionals Musings

I recognize that entrepreneurs tend to substitute vision and passion for formal processes, but using no discipline or process in building something new is a sure way to spend money, rather than see any return and build a self-sustaining business.

Startup Exits Should Be Positive and Planned Early

Startup Professionals Musings

If you startup is your dream, why would you want to think about an exit? There are two very real and practical reasons why you need to plan an exit: Outside investors want to collect their return. Entrepreneurs love the art of the start. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A). Even lifetime entrepreneurs can decide that enough is enough.

Your Business Exit: This Strategy Changes Everything

YFS Magazine

Entrepreneurs who are savvy about growing their ventures spend a lot of time thinking about growth strategies. The truly wise ones aren’t just thinking about growth – they’re simultaneously strategizing a successful exit. Finance Grow business exit plan exit planning exit strategy money selling a business

Maximizing The Value Of Your e-Commerce Business

YoungUpstarts

by Jock Purtle , owner of M&A Consulting Firm and Digital Exits. Jock Purtle is the owner of M&A Consulting Firm and Digital Exits. Jock has been featured in Featured in the publications, Forbes, CNBC, Entrepreneur, Business Insider and Inc.com for his knowledge and experience in e-commerce and entrepreneurship. Thinking Aloud acquisition exit strategy Jock Purtle M&A mergers & acquisitions selling a business

How To Choose An M&A Advisor When You’re Selling Your ‘Baby’

YoungUpstarts

For a young entrepreneur, the mergers and acquisitions process can be exciting and potentially lucrative but it can also be the source of considerable stress. Professionalisms exit strategy Larry Fontillas M&A mergers & acquisitions selling your businessby Larry Fontillas, managing director of the Americas for ansarada.

Robert Gerrish: The Story Behind FlyingSolo.com.au And How It Was Acquired By Australian Morning Television Star David Koch

Entrepreneurs-Journey.com by Yaro Starak

I had only just started to interview entrepreneurs and one of the very first guests was Robert Gerrish, co-founder of Australian small business community FlyingSolo.com.au (and author of the Flying Solo Book). Buying and Selling Businesses Podcasts Australian Small Business David Koch exit strategy Flying Solo flyingsolo.com.au ? [ Download MP3 | Transcript | iTunes | Soundcloud | Raw RSS ] Back in 2005, this podcast was brand new.

RSS 55

Dan Faggella: How To Take Yourself Out Of Your Business And Then Sell It For A Million Dollars

Entrepreneurs-Journey.com by Yaro Starak

The post Dan Faggella: How To Take Yourself Out Of Your Business And Then Sell It For A Million Dollars appeared first on Entrepreneurs-Journey.com. Podcasts AI Artificial Intelligence Brazilian Jiu Jitsu dan faggella exit strategy independent brand Jiu Jitsu Market Segmentation Self defense Selling businesses

RSS 66

IPOs, M&As, Liquidity, & You. (the entrepreneur)

Gust

If the company was successful, this quickly led to an IPO – a very happy ending for the entrepreneur, the angels, and the venture capitalists. The two major differences in the exit environment in the past decade are (1) the disappearance of the IPO market and (2) the rapidly increasing size of the average VC fund. Larger VC rounds and the lack of early IPOs have also resulted in substantially longer pre-exit waiting periods for venture capitalists.

IPO 105

Entrepreneurs: Due Diligence on Investors is Smart

Gust

Network with other entrepreneurs. Entrepreneurs are optimists by nature, so I definitely recommend the involvement of your favorite attorney (usually the pessimist). A successful entrepreneur-investor agreement better be the beginning of a long-term relationship. Due diligence should always be a two-way street.

11 Tips For Entrepreneurs

YoungUpstarts

The fourth is called an entrepreneur. The greatest exhilaration and reward in being an entrepreneur is clearly seeing things that others cannot see, and instinctively knowing how to accomplish your vision. The following are 11 key pieces of advice for aspiring entrepreneurs that have served me well during my 37 year career in starting and building businesses: 1. This may be the most critical trait of any successful entrepreneur.

Smart Entrepreneurs Plan Ahead For A Startup Exit

Startup Professionals Musings

The last thing a new entrepreneur wants to think about for a new startup is how it will end. Yet one of the first things a potential equity investor asks about is your exit strategy. Here are three important reasons for the question: Good investment paybacks normally require an exit event. Startups with no exit planned will minimize investor returns. Most entrepreneurs like the startup role, but not the big-company role. No exit.

Dan Faggella: How To Take Yourself Out Of Your Business And Then Sell It For A Million Dollars

Entrepreneurs-Journey.com by Yaro Starak

The post Dan Faggella: How To Take Yourself Out Of Your Business And Then Sell It For A Million Dollars appeared first on Entrepreneurs-Journey.com. Podcasts AI Artificial Intelligence Brazilian Jiu Jitsu dan faggella exit strategy independent brand Jiu Jitsu Market Segmentation Self defense Selling businesses

RSS 48

A vote for me is a vote for dipshit businesses everywhere

A Smart Bear: Startups and Marketing for Geeks

Michael Arrington wrote an interesting piece today at TechCrunch about how VCs are pissed that great entrepreneurs are taking under $500k of angel money instead of $2m their money. An entire generation of entrepreneurs are building dipshit companies and hoping that they sell to Google for $25 million,” lamented a venture capitalist to me recently. He believes that angel investors are pushing entrepreneurs to think small, and avoid the home run swings.

How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

Most entrepreneurs would love to be in a position to have to decide! I just coached an entrepreneur who couldn’t decide whether to accept an offer for selling his business of nine years. Type-A workaholics like me (and most successful entrepreneurs?) Sign up for AppSumo 's daily deals specifically for web geeks & entrepreneurs. Most entrepreneurs would love to be in a position to have to decide!

Sales 196

Smart Entrepreneurs Build Startups Without Investors

Startup Professionals Musings

In my experience as an advisor to aspiring entrepreneurs, I often encounter the myth that an initial startup requires investors. The media tends to highlight experienced entrepreneurs who succeed with early new venture funding, like Uber’s Garrett Camp , but fail to point out the more common bootstrapping successes. Entrepreneurs who don’t have someone else’s cash for outsourcing come up with the more innovative and creative approaches to get things done.

10 Business Plan Tips Too Many Entrepreneurs Forget

Startup Professionals Musings

No investor likes searching every page for key data, like executive credentials, or exit strategy. Investors hear from too many entrepreneurs that envision a great business opportunity, but don’t have any written business plan at all. On the other end of this spectrum are entrepreneurs who present long product specifications with a few financials at the end. This is a failing strategy as well.

6 Reasons Smart Entrepreneurs Think Twice Before IPO

Startup Professionals Musings

The visibility of Google, Facebook and a few others continues to propagate the myth that the ultimate objective of every entrepreneur should be to take their startups public via an initial public offering at the earliest opportunity. As an advisor and mentor to startups, I try to make sure entrepreneurs understand both the pros and cons of an IPO as an exit strategy. All strategy and operational moves become public. entrepreneur IPO liability startup

IPO 213

Savvy Entrepreneurs Look for More Than Funding

Startup Professionals Musings

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. Every entrepreneur needs help and support along the way, from developing the initial idea, to selling off the successful business (exit strategy). Growth and exit stage. universities entrepreneurs resources incubators funding startups investors

Limiting the Number of Shareholders in Private Companies

Gust

But, the SEC limit on the number of shareholders is not the only issue entrepreneurs should consider. If large amounts of capital are required for startup companies to dominate a market, then the preferences of larger investors, such as angels and venture capitalists should be paramount in importance to entrepreneurs. However, SEC limits on the number of shareholders in privately-held companies may not the primary issue for entrepreneurs. The U.S.

A New Era For Entrepreneurs And Startups Has Begun

Startup Professionals Musings

is already well above the dot.com bubble of 15 years ago, although we have slipped a bit this year from the high point of 320 new entrepreneurs out of 100,000 adults in 2011. There is additional encouraging news for aspiring entrepreneurs on many fronts, just in case you are thinking about joining the existing ranks: Valuations of successful startups have hit an all-time high. Thus a record number of entrepreneurs (and employees) are getting rich.

Good Sources for on Pros & Cons of Convertible Notes

Gust

Entrepreneurs: if you’re looking seriously at angel investment, and you have the kind of product-market fit and management experience investors will like, you need to take a good look at convertible notes. The nature of that deal called for equity because it was a good candidate for a 3-5 year exit but not likely to get a quick VC investment to establish valuation.

Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

I have often been asked about Startup Funding by entrepreneurs. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. Bridge or exit stage. The bridge or exit stage is generally of very large transactions and for companies with substantial valuation.

10 Signs That The Age Of The Entrepreneur Is Here Now

Startup Professionals Musings

According to the 2017 Kauffman Startup Activity Index , the share of new entrepreneurs who started businesses to pursue opportunity rather than from necessity reached 86 percent, more than 12 percentage points higher than in 2009 at the height of the Great Recession. There is additional encouraging news for aspiring entrepreneurs on many fronts, just in case you are thinking about joining the existing ranks: Valuations of successful startups have hit an all-time high.

When Did Profit Become A Bad Word For Entrepreneurs?

Startup Professionals Musings

As a startup advisor and investor, I find that more and more entrepreneurs avoid using the term “profit” in pitching their new venture. Thus I was pleased and a bit surprised to see a new book, “ The Purpose Is Profit ,” by Ed “Skip” McLaughlin, an entrepreneur who has both succeeded and failed in starting multiple businesses. Every entrepreneur needs a good “elevator pitch” which succinctly describes the idea, the customer value proposition, and business profit.

Outside capital: do or die?

Gust

Invested Interests angel investment angel investors board of advisors entrepreneurs entrepreneurship execution exit strategy fundraising startups tactics venture capitalA gigantic percentage of startup literature concerns how to raise capital. But before you start on that PowerPoint, let’s ask this: do you really have to? Or is it still possible to bootstrap and build a company organically? Strategically, the advantage outside capital provides is obvious: you can go faster.

Funding Tutorial for New Entrepreneurs

The Startup Magazine

One of the most significant hurdles that many aspiring entrepreneurs must face involves raising capital to launch their business. Entrepreneurs commonly invest some of their own capital in their ventures, but more money is usually needed. These are some of the many ways for today’s entrepreneurs to raise essential funds needed for a startup. The post Funding Tutorial for New Entrepreneurs appeared first on The Startup Magazine.

A long time ago in an economy far, far away.

Gust

Be willing, even anxious, to take a solid exit when the opportunity arises. Industry Experts angel investment angel investors entrepreneurs entrepreneurship exit strategy fundraising initial public offering IPO market venture capitalListen my children and you shall hear. Of IPO dreams once held so dear. Our forefathers’ jackpot, guaranteed to arrive. Hardly a founder now alive. Can remember that famous yesteryear.

25 Entrepreneurs Explain Why They Started Their Business

Hearpreneur

We asked some entrepreneurs and business owners, why they started their businesses: #1- Make learning to swim more convenient. I started our business and took the leap to become an entrepreneur because I am so passionate about seeing people get ahead in their careers.

How I Started, Grew & Sold An E-commerce Business For Quarter Million Dollars ($250,000) – Part 2

Entrepreneurs-Journey.com by Yaro Starak

This article picks up from that point onward, discussing the challenges we ran into once we went into operation mode, the invaluable lessons that only first-hand experience can teach, the exit strategy which was the $250,000 sale of the website, and finally my overall concluding thoughts on the entire experience. The Exit Strategy One fine weekend afternoon I received an email indicating interest in our business, and whether we were open to discussing the potential sale of it.