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All Money Is Not Created Equal
book

All Money Is Not Created Equal

by David Spreng
July 2023
Intermediate to advanced content levelIntermediate to advanced
240 pages
5h 18m
English
Wiley
Content preview from All Money Is Not Created Equal

Chapter 12Options for Exits

Ley took a chance by not selling 19/39 when Unicorn came calling, but it was a calculated risk. He had always viewed a sale as his exit strategy, but the company was on a promising trajectory, so selling to Unicorn would be premature. He had experienced, knowledgeable board members advising him and backing him up in his plan to wait to sell. The company's first-mover status, early success, and popular product all worked to Ley's and the company's advantage and were reasons that the board advised him to hold out.

By the time 4Paws' CEO Nickerson decided to sell to Unicorn, his company didn't hold the same potential it once did. Nickerson had imagined that his company would one day go public; he had long dreamed of being the CEO of a publicly traded company. However, the reality of missed milestones, exhausted employees, and tired investors forced him to sell. Had Nickerson not sold to Unicorn, he would have had to find new investors, which would have further diluted his equity stake.

***

You should begin with the end in mind. Venture capitalists and growth lenders do. They have a vision for what an exit – a liquidity event – might look like and when it might occur. Founders should, too – right from the start. VC investors, especially seed and early-stage folks, may not want to talk about it or hear you talk about it, but rest assured, they are thoughtful about exit options. Early planning can help you structure your business toward the desired outcome. ...

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Publisher Resources

ISBN: 9781119887805Purchase Link