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 case study.
Highlights of Part 1 – Johnny Humphreys and Basil Peters:
- The original idea and Pacinian’s mission.
- How far did the company get?
- Company sold before the product is in production?
- Pacinian’s $6 million of angel funding.
- Developing the exit strategy.
- Attending the Exit Strategies Workshop.
- It requires discipline. What might have happened.
- Many shareholders thought it was impossible.
- Who is really in charge during the negotiations?
- The exit timeline – how long did it all take?
- Congratulations Pacinian! A very successful outcome.
Highlights of Part 2 – Johnny Humphreys and Basil Peters:
- Valuation is always a challenge.
- Profile of the successful buyer.
- It was the “worst kept secret”
- $30 million cash for a company that was pre-revenue!
- The company set the price – not the buyers.
- Pacinian had several strategic options:
- Venture capital funding, licensing offers and moving to production.
- Similarities to the Brightside exit (case study here).
- Early Exits are optimum for most companies.
Highlights of Part 3 – Bill Payne and Basil Peters:
- This was not Silicon Valley.
- The Pacinian investments from the angels’ perspective.
- The Early Exits Strategy and book.
- Initial stakeholder skepticism about an Early Exit.
- At The Exit Strategies Workshop.
- Building the alignment – a critical need.
- A $30 million Early Exit – pre-revenue.
- The Frontier Angel Fund in North West Montana.
For more on the Pacinian exit, here’s the complete case study.