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?

Exit Strategy Is An Oxymoron

OnStartups

In early meetings, if a VC ever asks you what your exit strategy is, you should run, not walk to your nearest…um…exit. You want your investors to be more curious about how you''re going to enter a market than how they''re going to exit their investment.

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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.

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. There may be a natural catastrophe, like 9/11, or the market you counted on could implode.

Entrepreneurs: What's Your Exit Strategy? - allensblog - Typepad

Allen's Blog

Entrepreneurs: Whats Your Exit Strategy?   One used to hear investors ask the question to entrepreneurs: "what is your exit strategy?"    If one did that, one would have a nice exit.   Even without the impact of the recent Facebook IPO, there hasn't been a real IPO market for technology startups for years. Nevertheless, I still hear the question ("What's your exit strategy?") allensblog.

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

Up and Running

With historical financials, corporate organization charts, and general industry and customer information, a business plan (especially a current plan) will help in the preparation of an investment banker’s pitchbook or other confidential marketing materials. Stay abreast of the market.

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.,

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

YoungUpstarts

Look for an advisor who lays out the details for you when it comes to determining appropriate market value. Professionalisms exit strategy Larry Fontillas M&A mergers & acquisitions selling your businessby Larry Fontillas, managing director of the Americas for ansarada.

Prepare Your Exit Strategy Now – Just in Case

Inc Startups

We get so consumed in the day-to-day management of the business that it’s easy to overlook a key part of the strategic planning process: an exit strategy. Evaluate your market and realistically determine your competitive advantage relative to your peers.

How do you know when to exit your company?

StartupCFO

If so, here are the times when I think it makes sense to take the exit: Lack of Direction. Maybe the market is moving quickly and you just don’t know how to respond. Some markets are ‘winner takes all (or most)’. Stock markets (public and private) reward growth above all else.

Startup Acquisitions: Exit Strategy

Seed Stage Capital

skip to main | skip to sidebar 28 July 2010 Startup Acquisitions: Exit Strategy We recently put together our "thought piece" on the dynamic world of startup M&A. Startup Exit Strategy Thought Piece V7.6

Why My Exit Strategy Failed

Inc Startups

Exiting the company you founded is a natural part of entrepreneurship, and it can provide great financial rewards. But the exit also has consequences for you. We even managed to miss the 2008 recession and, according to our consultants, we received an above-market price. Today, four years after selling, I have learned that the riches of a successful exit can’t replace the rewards of leadership. In a business sense, I did everything right when I sold my company.

How to value your company for sale (Part 1)

A Smart Bear: Startups and Marketing for Geeks

This article assumes we’re talking about a volatile industry like software or emerging markets where almost nothing is “well-known&# and company trajectories are all over the map.). To control a market.

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Pasadena Angels Invest Over $4M in 2014

Ask the Angels

Our members had four very successful exits in 2014, including Bluebeam, App Swing by Swing, Lendamend, and Allylix. Company exit returns were as high as 10X return on initial investment. Pasadena Angels for the 3rd consecutive year invested over $4 million in an array of exciting start-up companies. Pasadena, Calif.

Conversations with Richard Chino, pt. 1

Ask the Angels

Blog General Angel Angel Investing Board of Directors Conversant Exit Strategies Fundraising GoTo.com Idealab Pasadena Angels Richard Chino Silicon Graphics Smarter.com Startup Companies Startups Valuation ValueClick VC

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. There may be a natural catastrophe, like 9/11, or the market you counted on could implode.

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. As you may know, startups can go public on active foreign exchanges – such as Toronto’s TSXV and the London AIM market – but there’s a catch. 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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How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

Or what if we have another stock market collapse or if they shoot down a plane over California? ME: Sure, but maybe that competitor would further validate and grow the market, which could increase your sales and make you even more attractive to a buyer!

Exit Strategy – Selling A Business Can Increase Its Value by 50+%

Angel Blog

An extraordinarily valuable lesson for both entrepreneurs and investors is that when you sell a business a well designed and executed exit strategy can easily increase the business valuation by 50%, and sometimes by 100%. Markets for Selling Companies are Very Inefficient.

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

Limiting the Number of Shareholders in Private Companies

Gust

Since the IPO market has been in the doldrums for most of the past decade, high-profile private companies have chosen (or been forced) to stay private while raising huge sums of money from VCs and other private equity sources. But, this SEC limit has created some problems for these high-tech phenoms, both in raising additional capital and in private sales through secondary markets in which early investors resell shares to a large number of smaller US buyers. The U.S.

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

Gust

Talented entrepreneurs are nothing if not resilient in the face of change: Market forces, competitive threats, technological shifts, you name it. Google, which incorporated in 1998, has a market cap of $200 billion and employs more than 30,000 people. Invested Interests angel investment angel investors equity exit strategy IPO shareholders startups venture capital

Finding the Right Fit

Scott Weiss

All great pitches have a few things in common: the founder/team is wicked smart, the idea is big and a breakthrough, and the market is potentially enormous. Founder/market fit” is important. In both cases, they typically have done a superficial, McKinsey-esque market analysis but have no passion or connection to the business. A lack of confidence is also a huge turnoff – usually typified by a single slide in the deck entitled, “Exit Strategy or Exit Options.”

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

Gust

And, a bit misty-eyed, this old war veteran can actually remember the glory days: Venture capitalists would commit tens of millions for a startup to buy expensive infrastructure; hire sales and marketing teams as products were still being built; and lease out big slugs of office space for the coming hiring spree. Established companies are sitting on absolutely mind-blowing amounts of cash, and many are in wars for critical market leadership. Listen my children and you shall hear.

How to Protect Business Value in a Tricky Economy

Inc Startups

By understanding what economic changes mean and adjusting to new market conditions, you can protect the value of your business and keep your exit strategy on track.

Exit Strategy - Creating Strategic Value

Angel Blog

Another reason a well designed and executed exit strategy can increase the business valuation by 50% or more when you sell a business is the ‘strategic value’ The only reason any company buys another company is because they believe: they can increase the value of the company being acquired, and/or. This type of company sale requires some significant skill and protective tactics, but it’s still a great element in an exit strategy.

The 3 Essential Questions You Have to Answer for Angel Investors

Gust

Growth means a strong market and a deliverable that’s scalable and defensible. 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 capital

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.

Exit Strategy - Selling my first company

Angel Blog

Our exit strategy was to sell our company to a Fortune 500 company in the defense business. When the Fed decided to terminate the junk bond business to prevent the real estate market from blowing up, all of our customers in North America, and Europe, suddenly stopped buying at the same time. I started my first company, Nexus Engineering, when I was still a grad student. A little over ten years later, the board decided it was time to sell.

Smart Entrepreneurs Plan Ahead For A Startup Exit

Startup Professionals Musings

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. No exit.

Machine Learning Meets the Lean Startup

Steve Blank

The technology’s broad market applicability and relevance are clearly paying off. Once their initial assumptions ran into the wall of actual customer feedback they rapidly built multiple minimum viable products (MVPs) and kept pivoting until they found product/market fit (i.e.

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Exit Strategy - Selling a Business and Inefficient Markets

Angel Blog

The market for selling a business is very ‘inefficient’ This is one of the reasons a well designed and executed exit can easily increase the value of a business by 50% or more. The best way to illustrate this is with a counter example - the residential real estate market. This is because the market is ‘efficient’ This means the market has lots of buyers and sellers, is relatively liquid and information is readily available.

For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

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. No exit.

What’s the Difference Between a Small Business Venture and a Startup?

Up and Running

Difference #3 – planning for the ‘end’ or the exit strategy. “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 Strategy - Acquisitions are usually under $30 million

Angel Blog

The really interesting story these days about tech exits is not the small number of really big acquisitions, it’s the big number of smaller acquisitions. For the typical entrepreneur and angel investor, these smaller transactions are an excellent way to make several million dollar capital gains and should be part of every company's exit strategy. I’ve written before on why this is a great time to plan an early exit. The tech M&A market is hot.

allensblog: Those !@#$%^&* Secondary Markets

Allen's Blog

Those !@#$%^&* Secondary Markets. Lots of recent activity by the commentariat about the risks of engaging in transactions on the secondary markets that are becoming popular (full disclosure: I'm an investor in, and on the Board of Directors of, SharesPost , a principal player in this space).  Much   Firms that have been critical of secondary markets have, themselves, been actively engaged in buying secondary shares. 

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Exit Strategy - Investor Psychology and Great Business Brokers

Angel Blog

In industries with inefficient markets, and more elastic pricing, these great sales people regularly get much higher prices for exactly the same product. I’m not sure I should be typing this. It’s something I hate to admit about myself. But the reality is all investors are subject to the same psychological imperfections.

10 Answers That Make Your Startup Plan Investable

Startup Professionals Musings

Investors are looking for a concise description of your product or service without technical jargon or fuzzy marketing terms with value quantified in customer terms. How big and growing is the total market and your target segment? What are your specific marketing and sales plans?

Those !@#$%^& Secondary Markets - allensblog - Typepad

Allen's Blog

More on "Those !@#$%^& Secondary Markets". A few days ago, I wrote in defense of secondary markets for shares of private companies against critics who argued they were dangerous, over-priced, take-advantage-of-the-little-guy markets (full disclosure: I'm an investor and Board member of SharesPost, a principal player in the space). So, remind me why many castigate the secondary markets among accredited investors in private shares as being over-priced ? allensblog.