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
- 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
- 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
- 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
- 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.