Every company should have a signed exit strategy. This is especially critical before contacting the first external investors. Different investors are compatible with different exit strategies. Getting this wrong can actually kill the company. The exit strategy is the foundation for the entire company plan.
This was a presentation to a hundred Dutch investors and CEO's at the Nyenrode Business Universiteit just outside of Amsterdam. In this video I describe the critical importance of exit timing and the dramatic effect it can have on investor returns and the lives of entrepreneurs.
This talk included:
How the internet has accelerated everything and shortened company lifecycles
Entrepreneurs now have “Weekenders” whe...
At the Artic 15 Conference: Exit Path in Helsinki, I describe exit strategies for European technology and life sciences companies. And explain why I believe growing a knowledge-based company in Europe today can be better than building one in Silicon Valley.
Why it used to be easier to grow a company in America
Yes, raising capital in Europe is more challenging and why
I believe Angel Investors could double their number of exits. This would double the returns on their portfolios. Yes, double. This video is from the 6th Annual Angel Investor Summit, Dunedin, New Zealand.
Double Your Exits includes:
OK, I’ll say it…Most angel investors lose money
We need to talk about it and I know we are already improving
Generating a consistent return on any investment portfolio isn’...
Recently, at an Exit Strategies Workshop in Victoria, someone asked me to compare the pros and cons of an early exit versus a traditional Venture Capital financing.
The scenario we used for our example was a successful startup company with a proven business that needed $10 million to $20 million to fund growth.
(In this article, I am being precise about the distinction between the business a...
When a saleable company fails to sell, it's often the seller's psychology that kills the transaction. Most of the time, the seller doesn't even know that they were the reason their company failed to sell. This talk describes the seller psychologies that can kill exits.
The Psychology of Exits
Presented at the Alliance of Merger and Acquisition Advisors Summer Conference
July 10, 2012 in Chicago
Every company needs an exit strategy. Ideally, the exit strategy should be signed off by the founders before the first dollar of external investment goes into the company. A good exit strategy, well matched to the characteristics of the business and market, will:
improve the probabilities of success
shorten the time to exit, and
often significantly increase the ultimate exit valuation
Companies certainly have cultures.
They also seem to have DNA. Corporate DNA is formed early on in a corporation's life-cycle. But unlike most living creatures, a company's DNA can change later in life.
Corporate DNA, like all other DNA, determines, to a large extent, the characteristics and success of the organism.
Flaws in the DNA can lead to infant mortality, or failure modes, that might not be apparent for many years.
When investors, o...