Your company has finally achieved this amazing success you’ve been working toward.
You’re looking to cash out.
Yes, you deserve it. But you’re not quite finished. The most critical stage is still to come: the exit.
Despite what many believe, founders don’t simply hand over the reins in exchange for a massive payday. Sounds great—but it’s more complicated than that. Here’s the deal. Exiting is actually a strategic decision—one founders should be aware of early on.
We’ve invested in over 100 successful startups and founded our own açai-infused vodka company, VEEV. We learned lessons the hard way. Now, we’d like to make it easier for you.
Maybe you’re thinking: What about going public via an initial public offering (IPO)? The truth is IPOs comprise a small percentage of total exits. Here, we’ll focus on the most common result: an acquisition.
First, you need to understand how your company is positioned for an attractive acquisition. There are plenty of areas to focus on to ensure a successful exit. Mastering any of these can greatly improve your odds:
What about revenue?
Yes, revenue is important. However, potential acquirers rarely buy a company based on it. Odds are your incremental revenue barely moves the needle.
While revenue—especially revenue growth rate—is important, the three aforementioned areas carry more weight. Let’s discuss some strategies using real-world examples.
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