Startup Professionals Musings

AUGUST 26, 2018

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.

Exit Strategy 179

Exit Strategy IPO SEC Stock Options 179

Startup Professionals Musings

FEBRUARY 19, 2012

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. So here are the most common exit strategies and considerations these days for planning purposes: Merger & Acquisition (M&A). One often-overlooked exit strategy is simply to shutdown, close the business doors, and liquidate.

Exit Strategy 191

Exit Strategy IPO Merger Startup 191

YFS Magazine

JANUARY 11, 2016

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. After all, very few of us would like to go into a new business venture visualizing our own imminent departure.

Exit Strategy 80

Exit Strategy Founder Entrepreneur Startup 80

Up and Running

NOVEMBER 12, 2014

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?

Exit Strategy 130

Exit Strategy Maldives Lock-up Period Merger 130

Startup Professionals Musings

SEPTEMBER 30, 2012

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. With the more popular Merger & Acquisition (M&A) exit strategy, the control stays with the new entity.

Exit Strategy 185

Exit Strategy IPO Entrepreneur Investment Bankers 185

Up and Running

DECEMBER 6, 2010

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.

Exit Strategy 110

Exit Strategy Liquidity Event Early Stage Entrepreneur 110

Up and Running

JULY 23, 2014

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.

Exit Strategy 129

Exit Strategy Due Diligence Angel Investor Venture Capital 129

YFS Magazine

MAY 15, 2019

Exit Strategy Grow business exit plan esop exit planning exit strategy sell your business selling a businessMost small to mid-sized businesses have a common challenge: Can we sell our business and get fair market value? Here's an option you may have overlooked.

Exit Strategy 116

Exit Strategy Marketing 116

Growthink Blog

APRIL 13, 2011

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.,

Exit Strategy 81

Exit Strategy Intellectual Property Acquisition Stock 81

YFS Magazine

SEPTEMBER 24, 2020

Exit Strategy Grow recommended small business retirement plansIt's never too soon (or too late) to start planning for retirement. Here are four options every business owner can consider.

Exit Strategy 71

Exit Strategy Small Business 71

Startup Professionals Musings

JULY 26, 2020

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. While the wins can be big, I still see the IPO option as one to be considered only under exceptional circumstances, rather than as the default exit option. costs exit strategy going public IPO startup

Cost 174

Cost Exit Strategy IPO SEC 174

YFS Magazine

NOVEMBER 11, 2019

Exit Strategy Grow acquisitions business brokers exit strategy mergers and acquisitions sell your businessIf you are planning to sell your company through the acquisitions process, you want to attract the best deal possible. Here's how to start a bidding war.

Exit Strategy 78

Exit Strategy Merger Acquisition 78

YFS Magazine

MARCH 12, 2018

Exit Strategy Grow exit planning exit strategy mergers and acquisitions selling a businessWe knew if we could continue to double our sales, we could hold off, keep scaling the business, and in the end be in a much better place to sell. And we did just that.

Acquisition 110

Acquisition Exit Strategy Merger Sales 110

YoungUpstarts

OCTOBER 3, 2019

Prepare an Exit Strategy. As well as cleaning up the books, you should also create and prepare an exit strategy in order to smooth the transition to new ownership. Regardless of your reason for exiting, you must include an exit strategy to offer a new level of peace of mind for potential buyers. If you plan is detailed and offers proven strategies, then you can increase the valuation of your company and speed up the sale.

Due Diligence 118

Due Diligence Exit Strategy Valuation Sales 118

YFS Magazine

OCTOBER 19, 2016

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.

Exit Strategy 104

Exit Strategy Operations 104

Gust

SEPTEMBER 6, 2014

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

Exit Strategy 85

Exit Strategy Portfolio Seed Stage Early Stage 85

Startup Professionals Musings

SEPTEMBER 30, 2015

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

Exit Strategy 198

Exit Strategy Startup Valuation Acquisition 198

Early Growth Financial Services

JANUARY 30, 2014

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.

Exit Strategy 38

Exit Strategy Acquisition Startup 38

Startup Professionals Musings

JANUARY 5, 2011

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.

Exit Strategy 222

Exit Strategy IPO Merger Startup 222

YFS Magazine

JANUARY 8, 2016

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.

Exit Strategy 83

Exit Strategy Finance Startup 83

YFS Magazine

DECEMBER 4, 2015

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

Exit Strategy 83

Exit Strategy Entrepreneur Finance 83

YoungUpstarts

JUNE 7, 2016

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 businessNowadays increasingly more of our business is happening online.

Exit Strategy 133

Exit Strategy Merger Acquisition Sales 133

Startup Professionals Musings

JULY 5, 2011

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. With the more popular Merger & Acquisition (M&A) exit strategy, the control stays with the new entity.

Exit Strategy 180

Exit Strategy Entrepreneur IPO Investment Bankers 180

YoungUpstarts

MARCH 9, 2016

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

Due Diligence 133

Due Diligence Exit Strategy Merger San Francisco 133

A Smart Bear: Startups and Marketing for Geeks

NOVEMBER 1, 2010

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

Exit Strategy 266

Exit Strategy Bandwidth Startup Revenue 266

A Smart Bear: Startups and Marketing for Geeks

AUGUST 16, 2010

Tags: Essays exit-strategy finance investment starting

Exit Strategy 266

Exit Strategy Angel Investor Bootstrapping Incubator 266

Entrepreneurs-Journey.com by Yaro Starak

AUGUST 17, 2018

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 62

RSS Cofounder Founder Exit Strategy 62

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

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. I covered the buyer side there; now let’s tackle the seller. Are you willing to sell your baby? At what price? Most entrepreneurs would love to be in a position to have to decide! Most, but not all.

Sales 196

Sales Exit Strategy Term Sheet Bootstrapping 196

Entrepreneurs-Journey.com by Yaro Starak

JUNE 11, 2017

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 Fagella 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.

RSS 59

RSS Email Exit Strategy Entrepreneur 59

Up and Running

SEPTEMBER 5, 2012

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 teamSimple as 1-2-3? Maybe. I like the 1-2-3 because it points out that the core elements of business planning are for managing a business, regardless of context.

Business Plan 112

Business Plan Exit Strategy Metrics Naming 112

Gust

JULY 31, 2012

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.

Angel Investor 102

Angel Investor Capital Gains Exit Strategy .Net 102

Entrepreneurs-Journey.com by Yaro Starak

JUNE 11, 2017

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.

RSS 43

RSS Email Entrepreneur Exit Strategy 43

Gust

DECEMBER 28, 2011

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.

IPO 106

IPO Initial Public Offering Seed Stage Entrepreneur 106

Gust

JANUARY 5, 2012

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.

Initial Public Offering 104

Initial Public Offering SEC Due Diligence Angel Groups 104

Gust

JANUARY 4, 2012

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

Angel Groups 98

Angel Groups Valuation Early Stage Exit Strategy 98

Gust

DECEMBER 27, 2011

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.

Due Diligence 102

Due Diligence Initial Public Offering Offshore Entrepreneur 102

Gust

DECEMBER 23, 2011

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.

Intellectual Property 96

Intellectual Property Balance Sheet Dilution Bootstrapping 96

Gust

DECEMBER 16, 2011

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.

Initial Public Offering 79

Initial Public Offering .Net Exit Strategy Mobile 79

Gust

NOVEMBER 23, 2011

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.

Prospectus 84

Prospectus SEC Intellectual Property Bankruptcy 84

Gust

NOVEMBER 4, 2011

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.

Valuation 86

Valuation Merger Vesting Pre-Money Valuation 86

The Entrepreneurial Mind

JANUARY 4, 2011

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

Exit Strategy 56

Exit Strategy Sales Employee Hiring 56

Gust

NOVEMBER 1, 2011

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?

Angel Investor 72

Angel Investor Intellectual Property Exit Strategy Finance 72

Gust

OCTOBER 31, 2011

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.

IPO 70

IPO Valuation Stock Exit Strategy 70