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Early Exits Overview

by Basil Peters on December 6, 2010 · 0 comments

Early Exits Overview

Presented at the ACA New England Angel Education Series – Boston, MA December 6, 2010.

The PowerPoint for this talk is available here.

To host an Early Exits Workshop for your group, please contact Chris Major at the Angel Capital Education Foundation.

Early Exits Overview – Part 1:

Early Exits Overview - Part 1

  • Much of what you hear about exits is wrong – dangerously wrong. There are so many myths and misperceptions.
  • And quite a few dirty secrets. This workshop is about what works today when you want to sell a business.
  • Angel investing is still quite new – about where traditional Venture Capital was in the early 1980s.
  • The economy has changed – a lot. That is part of the reason that traditional Venture Capital doesn’t work anymore.
  • When does it actually make sense for a company to take an investment from a traditional venture capital fund?
  • Why exits today are under $20 million and why Google wants even earlier exits.
  • Big companies aren’t the only buyers – there are several different types of buyers active in the market today.

Early Exits Overview – Part 2

Early Exits Overview - Part 2

  • Startup economics have changed. It’s now possible to build valuable companies for only $100,000s, or even $10,000s.
  • The internet has accelerated everything – many big exits have occurred just two or three years from startup. Here’s a list.
  • How early can you sell a business? Selling in 2 or 3 years is often the optimum time to sell a company.
  • The exit is just another business process – just like a product development or financing.
  • Every company needs a clear, written, signed exit strategy. It doesn’t have to be complicated.
  • Often the biggest question is not “How much can sell for?” it’s “How long will it take to sell?”
  • Companies should be ‘sold’ not ‘bought.’

Early Exits Overview – Part 3

Early Exits Overview - Part 3

  • Negotiating and closing the sale – even after you have a signed agreement, it can take 1 to 3 months to close.
  • The ideal exit team – the CEO, the M&A advisor, accountants, lawyers and possibly an exit coach.
  • Selecting the M&A advisor and M&A advisor’s fees.
  • Building shareholder value and maximizing the selling price.
  • This is a ‘golden era’ for technology entrepreneurs and angel investors.
  • The ‘new’ angel model and resources on exits.

You can also watch this video series on YouTube, starting with Part 1 here.

Many of these lessons are described in my new book on selling businesses for entrepreneurs and angel investors – www.Early-Exits.com.

If you enjoyed this video, you might also like Selling a Business Guide, Don’t Blow the Biggest Deal of Your Life, Early Exits – Your Golden Opportunity or Start at the End – Your Exit Strategy.

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