Selling a Business Guide Part 2

BY Basil Peters

Selling a Business – A Guide for Angel Investors and Entrepreneurs – Part 2

Selling a Business is the Best Part of Being an Investor or Entrepreneur

Keynote speech at the National Angel Capital Organization Summit on October 15, 2009.

Highlights of Part 2: The Exit Process, Selling the Business for 50% more, The Buyers and Exit Timing

  • How to sell a business for 50% more – the steps to completing a successful exit transaction
  • Why it’s important to engage professionals and why the CEO should not lead the exit
  • The exit is just another business process – every company should have a written exit strategy
  • Term sheets are an important part of building exit alignment and vesting is the most important term
  • Who are the buyers for tech companies today? It’s the best way for big companies to grow
  • Corporate buyers are now often the fiercest competitors for traditional Venture Capital funds
  • Today, companies are often acquired just two or three years from start-up
  • What determines how early you can sell? It’s right after you have ‘proven the business model’
  • Most entrepreneurs wait too long to exit and end up ‘riding it over the top’ and selling for far less than they could have

Part 3 of Selling a Business Guide is online here.

Many of the lessons I’ve learned are described in my new book on exit strategies for entrepreneurs and angel investors –