Early Exits" the First Book on Exit Strategies for Entrepreneurs and Angel Investors
1:15 AM
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.
Almost all of the earlier books on exit strategies were for business owners who wanted to retire. Recently, there have been a number of books written about exit transactions for traditional venture capitalists. "Early Exits" is the first book about selling companies specifically written for entrepreneurs and angel investors.
Today, it's most likely a company will be sold without ever having an investment from a venture capitalist. This is happening because the traditional venture capital model is badly broken and because new technologies make it possible for entrepreneurs to build companies with far less capital than ever before.
Most people are surprised to learn that the median price of private companies that are sold is only about $15 million. The median price in most of the large databases is closer to $25 million, but that only includes the larger transactions where prices is disclosed.
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.
The first step in building a company that will have an early exit is to ensure all of the shareholders aligned on the exit strategy. 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.
"Early Exits" was written to 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.
Almost all of the earlier books on exit strategies were for business owners who wanted to retire. Recently, there have been a number of books written about exit transactions for traditional venture capitalists. "Early Exits" is the first book about selling companies specifically written for entrepreneurs and angel investors.
Today, it's most likely a company will be sold without ever having an investment from a venture capitalist. This is happening because the traditional venture capital model is badly broken and because new technologies make it possible for entrepreneurs to build companies with far less capital than ever before.
Most people are surprised to learn that the median price of private companies that are sold is only about $15 million. The median price in most of the large databases is closer to $25 million, but that only includes the larger transactions where prices is disclosed.
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.
The first step in building a company that will have an early exit is to ensure all of the shareholders aligned on the exit strategy. 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.
"Early Exits" was written to help entrepreneurs and angel investors have more successful, more frequent and more profitable exits.
About the Author:
Learn more about selling your companies early and get your ebook or hardcopy of "Early Exits" by J. Basil Peters at the Early Exits website.
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