Blog

Angel Investing

Improving Returns for Angels and Entrepreneurs – Element8 Angels, Seattle

by Basil Peters | May 26, 2014 | one response

Financial Loss

This video is a talk I gave at the Element8 angels workshop in Seattle: Investing a World With Few Exits.

Some of the key points from my talk:

  • I believe only 25% of all companies that could have been sold actually end up successfully exiting
  • If a company misses the ideal time to exit, then the most likely result is that it will fail completely...

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Angel Investing

Double Your Exits – 6th Angel Summit Dunedin, New Zealand

by Basil Peters | March 8, 2014 | no responses

Valuation and Angel Education

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’...

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Entrepreneurship

Why Big Companies Can’t Innovate

by Basil Peters | February 15, 2014 | 13 Comments

Untitled-3

When I was in grad school I co-founded a company that grew to become the second largest manufacturer of cable television headend equipment in the world. For the ten years after I graduated, I woke up every morning thinking of ways to out-innovate our two major competitors. We were a startup and they were both Fortu...

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Entrepreneurship

What Happened to Venture Capital? UBC Sauder School of Business

by Basil Peters | January 10, 2014 | no responses

What Happened to Venture Capital

This was a lecture to the MBA Entrepreneurial Finance Course at the University of British Columbia Sauder School of Business.

Here's what happened to the Venture Capital industry:

  • Intel, Microsoft and Cisco aren't making money for their shareholders
  • Or, more importantly, for their employees
  • That's part of the reason the best and brightest are now working in startups
  • Big companies have lost their a...

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Case Studies

Selling a Business for 50% More – Case Studies

by Basil Peters | January 2, 2014 | 9 Comments

Building_Company_Value1-403x300

Most people have difficulty believing that you can sell a business for 50% more just by executing the exit well. I've written before about how this can be achieved. This post has video excerpts where you'll see CEOs and Chairs who have actually done it. It is very unusual to hear case studies ...

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Exit Timing

The Exit Process and Timeline

by Basil Peters | November 25, 2013 | no responses

Exit Process and Timeline

This video from the Exit Strategies workshop describes the exit process and timeline.

Highlights of The Exit Process and Timeline:

  • For many exits, the biggest question isn't "How Much Can We Get?"
  • Instead "It's How Soon Can We Exit?"
  • The short answer is 6 to 18 months
  • From the time you engage an M&A Advisor, until the cash is in the bank
  • But it can take longer if the company isn't r...

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Early Exits

An Early Exit is Better than a VC Financing

by Basil Peters | October 6, 2013 | 4 Comments

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...

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Exit Execution

No One Can Sell Your Cash Well

by Basil Peters | | no responses

What I’m about to describe is difficult for some people to understand. Recently, I completely failed to convey this concept to an experienced professional accountant. The fact is, nobody can sell your cash well. What I mean is this: if you’re thinking about selling your company, I feel strongly that it’s desirable to strip out the cash that’s not absolutely necessary before starting the exit valuation negotiation with pr...

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Exit Execution

Financial Model and Projections

by Basil Peters | August 15, 2013 | 6 Comments

Graph of EBITDA

For almost every M&A transaction the Confidential Information Memorandum (CIM) contains both actual financial results and projections.  (The rare exception is a company whose entire value is a patent portfolio.) In companies with external investors, management teams are familiar with projecting financials. This is a necessary part of projecting future financing requirements. For internally financed companies that are ready to exit, the enti...

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Angel Investing

Pacinian – Pre-Revenue $30 Million Exit

by Basil Peters | August 13, 2013 | one response

Pacinian-Pre-Revenue-30M-Exit

In earlier days, entrepreneurs dreamed of founding an innovative start-up and building it into a big company. After many years of solid sales and profits, the company might be acquired, with founders and investors earning a capital gain. But in today's fast-evolving technology marketplace, growing a small start-up into a big company may not be the best strategy. An increasing number of promising start-ups are exiting early at very attractive valuat...

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Angel Investing

Pacinian – The Interview Videos

by Basil Peters | | 5 Comments

Pacinian Video Thumbnail

It's rare to be able to post a detailed case study on an early exit. The most interesting information is usually restricted by a non-disclosure agreement. This is a very valuable opportunity to hear directly from the Chairman and a lead investor about what went on behind the scenes in this $30 million pre-revenue exit. These videos complement the complete written Read More

M&A Advisors

Gold, Silver and Bronze M&A Services

by Basil Peters | July 25, 2013 | 2 Comments

I recently had a fascinating conversation about fees with another M&A professional. We weren't competitive because our firms worked in different geographic regions, so we had no hesitation in openly discussing our firm’s fee structures. His firm is considerably larger than mine. They employ dozens of professionals, associates and support people. We agreed pretty quickly on what Read More

Uncategorized

Exit Strategies Workshop Sept 17, 2013
at SFU Downtown Vancouver, BC

by Basil Peters | July 9, 2013 | no responses

I'm pleased to announce another full day Exit Strategies Workshop at SFU Downtown Vancouver on September 17, 2013. Attendees consistently rate the Exit Strategies Workshop as excellent. Here’s some feedback from previous atteendees. Joining me again are Steve Lukas, Axel Christiansen, Prentice Durban and Steve MacDonald. Here's more on the Read More

Exits Workshops

Exit Strategies Workshop
Prentice Durbin on Legal Planning

by Basil Peters | | one response

Prentice Durbin

In the tenth presentation at the Exit Strategies Workshop 2012, Prentice Durbin discusses exit legal planning. Prentice describes the essential legal processes which should be started early to ensure a successful exit. He calls this "Planning for Payday".

Highlights of Part 10 - Legal Planning (Planning for Payday):

  • Be prepared. Image and Perception.
  • Reduce transaction stress (save time).
  • Personal tax exempt...

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Exits Workshops

Exit Strategies Workshop
Steve Lukas on Fear the Representations and Warranties

by Basil Peters | | no responses

Steve Lukas

In the twelfth presentation at the Exit Strategies Workshop 2012, Steve Lukas describes why you should fear the Representations and Warranties.

Highlights of Part 12 - Fear the Representations and Warranties:

  • What is a representation and warranty?
  • What is a covenant? What is a condition?
  • Disclosure, Insurance and Risk allocation
  • Make representations true!
  • Schedule exceptions – i.e.,...

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