Companies are getting sold early than ever before. Tech companies are often sold only one or two years from start up. This is happening now because the IPO market is dead, the Venture Capital model is broken and the fundamental structure of the American economy has changed dramatically.
There is very little information available for entrepreneurs and angels on exit strategies, exit plans and selling companies. The books and blogs that are available are usually on starting, financing and growing companies.
In the past, the books written about selling companies have been for business owners who wanted to retire. There are also a few books on exit strategies for venture capitalists. "Early Exits" is the first book about selling companies specifically written for entrepreneurs and angel investors.
The venture capital industry is in crisis. The traditional venture capital model is broken. Today, it's most likely a company will be sold without ever having an investment from a venture capitalist.
The reported median price of private companies that are sold is about $25 million. But this only includes the transactions where price is disclosed. Most often, the price is not disclosed for the smaller transactions. The median price for private M&A transactions is probably under $15 million.
Companies are being sold earlier than ever before because big companies have lots of cash on their balance sheets. Big companies know they are not good at starting businesses or growing businesses from zero to $20 or 30 million in value. Large companies are much better at growing businesses from $ 20 million to $200 million in value. Today, growth by acquisition is the best way for big companies to grow. Many large companies are spending more on M&A than R&D.
These trends have created a golden era for entrepreneurs. Never before has it been so easy for entrepreneurs to build valuable companies on so little capital, and to sell them so quickly for so much money.
Every company needs a clear exit strategy - right from founding. It doesn't have to be complicated. Good exit strategies are often only a few sentences long. The important thing is to have all of the shareholders aligned on the exit strategy. "Early Exits" is about exit strategies that every entrepreneur and angel investor should be utilizing right from start up to maximize the chances of an early, profitable sale of their companies.
Reading "Early Exits" will help help entrepreneurs and angel investors have more successful, more frequent and more profitable exits.
There is very little information available for entrepreneurs and angels on exit strategies, exit plans and selling companies. The books and blogs that are available are usually on starting, financing and growing companies.
In the past, the books written about selling companies have been for business owners who wanted to retire. There are also a few books on exit strategies for venture capitalists. "Early Exits" is the first book about selling companies specifically written for entrepreneurs and angel investors.
The venture capital industry is in crisis. The traditional venture capital model is broken. Today, it's most likely a company will be sold without ever having an investment from a venture capitalist.
The reported median price of private companies that are sold is about $25 million. But this only includes the transactions where price is disclosed. Most often, the price is not disclosed for the smaller transactions. The median price for private M&A transactions is probably under $15 million.
Companies are being sold earlier than ever before because big companies have lots of cash on their balance sheets. Big companies know they are not good at starting businesses or growing businesses from zero to $20 or 30 million in value. Large companies are much better at growing businesses from $ 20 million to $200 million in value. Today, growth by acquisition is the best way for big companies to grow. Many large companies are spending more on M&A than R&D.
These trends have created a golden era for entrepreneurs. Never before has it been so easy for entrepreneurs to build valuable companies on so little capital, and to sell them so quickly for so much money.
Every company needs a clear exit strategy - right from founding. It doesn't have to be complicated. Good exit strategies are often only a few sentences long. The important thing is to have all of the shareholders aligned on the exit strategy. "Early Exits" is about exit strategies that every entrepreneur and angel investor should be utilizing right from start up to maximize the chances of an early, profitable sale of their companies.
Reading "Early Exits" will help help entrepreneurs and angel investors have more successful, more frequent and more profitable exits.
About the Author:
Start preparing for your early exit today - purchase "Early Exits" by J. Basil Peters today at Early Exits website.
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