Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Most startups are launched with the idea of selling the business for a substantial gain in five to seven years.
Many companies reach that stage and find they can’t sell the business, at least not for the price they want.
Here are some options:
- Reduce your burn rate to zero and keep running the business.
- You can split up the business into its component parts - team, inventory, technology, and sell IT to multiple buyers.
- You can sell the business to the other founders and take a revenue share for your equity portion of the business.
- You can sell the business to the investors and do the same thing.
- You can line up a manager of the business to take your place and then dividend back to the investors a portion of the revenue ‘til they receive a payback amount.
While you may not reach a full acquisition as planned, there are several ways to exit the business and pay back the investors.
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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