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.

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? See Also What Startups Need to Know About Exit Strategies. Who needs an exit strategy?

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. To some, an exit strategy sounds negative.

How To Formulate A Founder Exit Strategy

YFS Magazine

Lead business exit plan exit planning exit strategy startup exits succession planningAt the end of the day, some entrepreneurs simple don’t want to bother thinking about this sort of stuff.

An IPO Exit Strategy Puts the Entrepreneur at Risk

Startup Professionals Musings

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.

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. The traditional exit strategy.

Simple Need-To-Know on Exit Strategies

Up and Running

What’s an exit strategy? 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.

There seems to be a lack of long-term investment in startups. Why is the 3-5 year exit strategy more desirable than a 10-20+ year timeframe?

Gust

Because that 200% is an annualized return, that means if the investor is going to hold for four years before an exit (taking the midpoint between your 3-5), the company needs to be able to generate 2x2x2x2 at exit, or a 16x return. If, on the other hand, the money must patiently wait for its payoff for fifteen years (taking the midpoint between your 10-20), the math goes: 2x2x2x2x2x2x2x2x2x2x2x2x2 x2x2 at exit, or 32,768x. Locate the nearest exit

333 Million Reasons to Have an Exit Strategy Plan

Growthink Blog

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.,

8 Steps to Exit Your Startup With Pride And Profit

Startup Professionals Musings

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. For these reasons, I always look for an overt exit strategy in every startup I might consider for an angel investment.

Closing My Business: How I Knew It Was Time To Move On

YFS Magazine

Grow Operations closing a business exit planning exit strategyPassion changes. It’s fleeting. And I’m convinced that if we follow it, we’ll never catch it.

Startup Exit Strategy Planning: 10 Surprises Buyers Don’t Like to See

Early Growth Financial Services

In planning your startup exit strategy, keep in mind these things that no acquiring company wants to see during an exit: 1. Obviously this documentation is useful not only in the case of an exit, but in other situations too, such as when you are fundraising or trying to go public. During an acquisition, potential buyers don’t want to discover anything new that wasn’t previously disclosed, anything that raises any questions, anything at all unexpected.

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

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.

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Real Entrepreneurs Exit If Their Startup Goes Public

Startup Professionals Musings

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. entrepreneur startup going public IPO exit strategy 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. To some, an exit strategy sounds negative.

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. 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

Professionalisms exit strategy Larry Fontillas M&A mergers & acquisitions selling your businessby Larry Fontillas, managing director of the Americas for ansarada.

3 Signs It’s Time To Quit A Failing Business

YFS Magazine

Finance Grow business failure exit planning exit strategy failure startup failureOnce you understand when it's time to pivot or close your doors entirely you can take those lessons and move forward to new ideas, with better prospects and experience under your belt.

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.

Begin with the End in Mind: Include Your Business Exit in Your Business Plan

Up and Running

In many ways, general business planning is one of the best precursors to business exit planning. Staying current and keeping fresh are all part of the “soft” metrics of planning for the exit, but are still important when it comes to not leaving money on the table.

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

Entrepreneurs-Journey.com by Yaro Starak

Podcasts AI Artificial Intelligence Brazilian Jiu Jitsu dan faggella exit strategy independent brand Jiu Jitsu Market Segmentation Self defense Selling businesses

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Sideways Startups: An Investor’s Dilemma

Gust

One-half of angel-funded companies fail, which is why a winning Investment Strategy for Angels includes diversification. Amidst all the talk of failures and exits, we forget there are actually three possible outcomes for angel-backed startups. Most angel investors hold an ownership position in a few companies that have no exit opportunity. The buyer has very little invested but maintains potential for an eventual exit or buy-back from the company or other investors.

6 Business Plan Essentials In 1-2-3

Up and Running

Business plans get a bad name because they too often deal in the high-level strategy without including any teeth, like tracking and metrics, to make them real. Exit strategy. Business Planning business loans business plan essentials cash flow exit strategy management team

How to value your company for sale (Part 1)

A Smart Bear: Startups and Marketing for Geeks

Even if you've managed to scrape together ten million dollars of revenue over the pa How-To exit-strategy financeI recently helped a friend broker the sale of his small, bootstrapped company.

Sales 295

Build your own Startup Death Clock

A Smart Bear: Startups and Marketing for Geeks

Tags: How-To exit-strategy finance inspiration investment planning

A vote for me is a vote for dipshit businesses everywhere

A Smart Bear: Startups and Marketing for Geeks

Tags: Essays exit-strategy finance investment starting

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

Gust

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. Consequently, the fraction of venture funded companies that have used the IPO to define the exit for investors has been reduced from 90% twenty years ago to less than 10% today. Larger VC rounds and the lack of early IPOs have also resulted in substantially longer pre-exit waiting periods for venture capitalists.

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Limiting the Number of Shareholders in Private Companies

Gust

Invested Interests angel investment angel investors crowd funding deal terms due diligence entrepreneurs entrepreneurship equity exit strategy fundraising initial public offering IPO pitching shareholders startups structure tactics venture capitalThe U.S. Securities Exchange Act of 1934, section 12(g), generally limits a privately held company to fewer than 500 shareholders.

Good Sources for on Pros & Cons of Convertible Notes

Gust

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. Invested Interests angel investment angel investors Antone Johnson AVC AVC.com convertible notes David Hornik deal terms entrepreneurs entrepreneurship equity execution exit strategy Fred Wilson fundraising pitching terms valuation valuations venture capital

How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

He can't assign a probability t How-To exit-strategy financeIn Part 1 I explained how it’s senseless for small companies to compute “one correct value&# for the company, but rather that buyers and sellers must be considered separately.

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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.

Entrepreneurs: Due Diligence on Investors is Smart

Gust

Invested Interests advisors angel investment angel investors board board of advisors due diligence entrepreneurs entrepreneurship equity exit strategy fundraising initial public offering shareholders startups terms venture capitalDue diligence should always be a two-way street. A while back, I published an article on “ Startup Due Diligence Is Not a Mysterious Black Art ,” describing what investors do to validate your startup before they invest.

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

Entrepreneurs-Journey.com by Yaro Starak

Podcasts AI Artificial Intelligence Brazilian Jiu Jitsu dan faggella exit strategy independent brand Jiu Jitsu Market Segmentation Self defense Selling businesses[ Download MP3 | Transcript | iTunes | Soundcloud | Raw RSS ] Three years ago Dan Faggella appeared on the EJ Podcast and proceeded to blow our minds about what you can do with email segmentation. Dan explained how he rapidly grew a successful martial arts teaching business online.

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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.

Probable and Improbable Lobbying Wins: The 1,000-stockholder Rule

Gust

Invested Interests angel investment angel investors equity exit strategy IPO shareholders startups venture capitalTalented entrepreneurs are nothing if not resilient in the face of change: Market forces, competitive threats, technological shifts, you name it. In recent years, government regulation has emerged as another such force to be reckoned with in the technology industry.

Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

Depending on the circumstances, they can shape the fundamentals of an exit, redistribute value among stakeholders, or even kill a deal altogether. This discussion expands on my Quora answer to a specific question: “ Why were the stock options of MySpace employees worthless even though the company was sold to News Corporation for hundreds of millions? ” The complete story includes a startup-within-a-startup, investments and exits by two VC firms, and some genuine corporate drama.

How Startup Valuation Works

Business Plan Blog

Business Funding capital entrepreneur exit strategy investor investors startup startup valuation valuation Startup Valuation is Tricky Business.

The 3 Essential Questions You Have to Answer for Angel Investors

Gust

Are you committed to an exit? It doesn’t take defining the exit in great detail from the beginning; you’re predicting the future here, which nobody does that well, so you get a lot of benefit of the doubt. But you do have to be committed to working for that exit. Invested Interests angel investment exit strategy fundraising ROI startups venture capitalAre you wondering about angel investment ? How to find investors? What steps you need to take?

The Copper Ring

Gust

Lots, on the other hand, have passed up attractive exits only to see the market turn against them, the model run out of steam, or a competitor pass them by. Locate the nearest exit angel investment execution exit strategy fundraising startups venture capitalOddly, perhaps, one of the most difficult decisions entrepreneurs face arises once the company begins to succeed.

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.

Sweat the Details

The Entrepreneurial Mind

My lecture on the exit process is one of my favorites to give to my students. Even my more experienced graduate students have an unrealistic view of the exit process. Charlie Crystle shares his own sorted exit story from the sale of his business in an article at CNN Money : "My software company ChiliSoft sold for $100 million in 2000. Charlie Crystle Exit strategy selling a business

5 Steps For Penetrating A New Market

YoungUpstarts

Between choosing location in new cities to creating an exit strategy after you attain success, penetrating a new market requires a strategic plan. This will also help you optimize your growth marketing strategies for scale. Decide on Growth Strategies.

7 Things Investors Use To Determine Valuation

Early Growth Financial Services

In my experience, I’ve seen that there are seven … Continue reading → Equity / Debt / Venture Funding exit strategies financial milestones funding size investor market size milestone funding milestone raises startup valuation valuation VCs venture capital venture capitalistsI’ve already addressed formal valuation for startups in previous posts: Generating Your 409A Valuation and Calculating Your Equity Valuation.