Early Exits Workshop – Silicon Valley – Part 3

BY Basil Peters

Sponsored by the Angel Capital Education Foundation and the Angel Capital Association
presented at the Angel Capital Association National Summit, Silicon Valley May 5, 2010

Part 3 – Exit Execution

Part 3 PowerPoint PDF here

Part 3-1:

  • Ways we can increase successful exits and the eight steps to executing an exit
  • The ideal exit team and why the CEO should not lead the transaction
  • The roles of the professionals, the M&A advisor, the exit coach, the lawyers, etc.
  • Why most companies don’t do the best job of selecting their M&A advisor and why they should be local
  • M&A advisory fees and why failure is such a common result

Part 3-2:

  • The exit timeline – why the first question is often “How long will it take?” The honest answer to how long it usually takes
  • Timing is important, when to tell the team, things to do before contacting the first buyer
  • Building the sales funnel, the auction and bidding process, negotiating and closing

Part 3-3:

  • Cleaning up the company and preparing to exit – essential steps before contacting prospects
  • Corporate records and taxes, the share register, review or audited financials?
  • The importance of modern, up to date employment agreements and contractor agreements
  • The essential sales collateral, due diligence online, the teaser, the selling document, numbers and possibly a video

Part 3-4:

  • Maximizing the selling price and building shareholder value, planning to over-achieve
  • Several ‘non-operational’ ways to increase the final selling price
  • Structural value increase, illuminating strategic value, the benefits of multiple bidders, selling and negotiating skill
  • Why the reps and warranties are the ‘scariest part’, closing the deal and life options after you sell
  • Videos and other resources on executing good quality exits

Part 4 is online here.

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

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