Startup Funding Espresso -- How to Plan for an Exit

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Here are some key steps to take in planning the exit for your company:

- Understand why you are exiting the business.  
- Is this exit going to be seller motivated or buyer motivated?
- Explore the options. Consider who would be the best acquirer or which company would be best to merge with.
- Consider the market and industry. Is your industry consolidating? Is the market growing?
- Know what your company is worth. Research comparable valuations of similar companies. Revenue is typically a key factor as well as profit.
- Start talking with potential acquirers and update them regularly on your progress.
- Ask other founders and CEOs for their exit experience. Find out what they discovered in going through an exit.
- Ask your current investors about their experience with exits to see what they know.
- Once you have a target acquirer, make a list of what they want to see in your company in order to buy it.

This list becomes your strategic plan.

Work on achieving it and keep the acquirer up-to-date on your progress.

Just as investors watch your progress, so acquirers will do the same.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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