13.
Harvest Time
Some entrepreneurs pass on their businesses to family members. The majority, however, eventually look for an opportunity to harvest the monetary value they have created—value that is locked up in the enterprise. This chapter examines the motivations that lead to an exit, the primary mechanisms for using an exit to harvest the company’s value, and the methods used to determine the right value for the business.
Why entrepreneurs cash out
There are probably as many reasons for harvesting an investment as there are entrepreneurs. Retirement is one reason. An offer “too good to refuse” is yet another. Most investment harvesting, however, ...
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