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
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
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
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...
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.,...
I'm pleased to announce a special version of the Exit Strategies Workshop in Victoria, BC on May 22, 2013. Attendees consistently rate the Exits Workshop as one of the best. Here’s some feedback from previous atteendees: http://www.exits-workshop.com/testimonials.html Two Victoria resident CEOs will describe the inside stories on the...
My bookshelf has an entire section of books on valuation. Even though I deal with valuation every day, I haven’t looked at any of those books for at least a couple of years. It’s just not a process you need reference books for. Most of the time, acquisition valuations can even be done without a spreadsheet – many professionals will work out the valuation on a whiteboard or even a post-it-note. That sounds simple, but valuation is actually qui...
Every company should have a signed exit strategy. This is especially critical before contacting the first external investors. Different investors are compatible with different exit strategies. Getting this wrong can actually kill the company. The exit strategy is the foundation for the entire company plan. Key Points: All companies can be divided into two types Only one of those two types works for investors
This is the first time I've described all of the things we did wrong the first time I tried to sell a business. It's also the story of the first time I lost several million dollars. How Not to Sell a Business - Don't Blow The Biggest Deal of Your Life This is a talk I gave to the Vancouver Chapter of the Entrepreneurs Organization (EO) on February 19, 2009. It is consistently the most viewed video on my blog. In this talk, I compare my f...
I'm convinced that only about 25% of saleable businesses end up having successful exits. Yes. I believe that about 75% of the time, when a company could have been successfully sold, the result was either a transaction at prices or terms below market - or even worse - no sale at all. Most of the time, it was preventable. The biggest reason this happens is simply due to a lack of knowledge. The Frustrating Lack of Data on Exits One of the ...