Business Exits: Preparing Your Business for Sale – Part Two

The problem for many people when they sell their business is that they leave millions on the table – just because they don’t understand how business exits work. When selling your business, you need to be “Investor Ready” which means that you need to reduce the risk in the business and increase the profitability. In the last post, […]

Business Exits: Preparing Your Business For Sale – Part One

Selling your business is the triumphant validation of your hard work and ambition.  It means someone other than you has bought into your dream. The problem is, unless you know how to exit a business properly, you may end up like many other owners who leave millions on the table – just because they don’t […]

Raising money is a full-time job. Ask any entrepreneur who has successfully completed a fundraising phase, and they’ll tell you that it monopolized their time for months — if not longer. I recently asked Ash Maurya, the founder of Spark59 and a prolific author on the topic, about the trade-offs entrepreneurs make when they decide to raise funds, instead of pursue customers.

“Investors care about traction above everything else,” he said. “But traction is nothing more than engagement with your customers. Given that fundraising tends to be a full-time job, until you can demonstrate some initial traction, you are best served pursuing customers over investors.”

Weston Bergmann, "4 Reasons Bootstrapping Can be Smarter than Raising Capital" (Venture Beat News, 2014)

Business Exits: Strategic Investment in Stratton Finance

What makes your company a “strategic acquisition” for a bigger company?  If you can answer this question, the stage is set for a business exit at high multiples. An illustration of this principle is found in the acquisition of shares in Stratton Finance by Carsales is an online car advertising group in Australia.  It […]

Capital Raising: Anatomy of a Terms Sheet Part Two

Getting a Terms Sheet for many is, in the words of Mark Zuckerberg, when an entrepreneur gets to turn the tables and declare to the world, “I’m the CEO, bitch.”  The previous post went through the first sections of this VC holy grail document and this post analyses the remaining sections. Redemption If the Terms Sheet has […]