Exit Planning – Getting Your ROI Up
It is estimated that only 26% of Tech startups will have a successful Exit, and less than 20% of startups that raise Capital will Exit. The rest either Fail or turn into Zombie Companies, where low or no growth makes them unattractive to further Capital and to Potential Buyers. Good planning at least 2 years ahead of the exit is necessary to maximise your Exit value.
Why a Cap Table is Critical
The price a buyer pays for the business will NOT be shared evenly. If you have done any capital raising and used Convertible Notes, SAFE notes or other instruments, have an empployee share scheme or even preference shares, then having an up to date cap table is critical to calculating returns.
Why PR and Time is so important to a Trade Sale Exit.
A potential buyer will not buy you if they haven’t ever heard of you. To get on IBM’s acquisition radar, IBM customers must be singing your praises. Marketing theory says that a customer needs 7 touch points before buying, how do you create the seven touch points for your potential buyers?