Exit strategy options


Considering an exit in 6 -12 months, What steps should be taken to maximize the exit? In addition to a variety of tactical steps, describe the pros/cons of acquisition versus merger?

Robert Castaldi
38 months ago

3 answers


Depends on industry, competitive landscape and emergence of disruptive technology. If you have a disruptive technology and the larger players in the field are starting to notice and enter the field, go to the competitors of the first large player to offer something similar to what you got. For being acquired, it is always better to be asked than to go seeking. To get asked, get your technology noticed as a leader and a difference maker. If you don't have a difference making technology, then it may be about revenue potential. Not sure what you mean by acquisition v merger - do you mean you making an acquisition v deciding to emrge with another player? Thoise don't usually come up in the same conversation IMHO. Making an acaquisition assumes youa re financially strong, where as seeking a merger usually means you determined that you cannot go it alone and succeed,l but you have real value to offer another.

Ed A
38 months ago
Good points! Also, important to ensure that key team members are aligned, and will support the transition of the above mentioned valuable technology to a different organization. Finally, IP clauses can be complicating matters, again, depends on the industry. - Veronika 37 months ago
  • What does the owner/ major stockholder/CEO really want and why? be part of a larger company for long, short timeframe? take the cash asap and retire? start another company? get out of a situation where personal cash and energy is dwindling? ultimate dream?
  • larger company buying is effectively an acquisition even if they call it a merger.
  • what industry as different norms.
June Klein
38 months ago

Well, having just achieved a successful exit and knowing about many others I have worked on I can tell you that asking this now is very late if this is a start or any business fir that matter.
The exit began the mom et you started. The original idea incarnation and pursuit decision must be built around exit options in tune with the entire business model and whi the stakeholders are and the when, where and why if the industries in the value chain.
The business model and technologies validated by actual commercial activity, who the investors, partners, customers, suppliers and regulatory approved are if required drive valuation more than anything else. Having a transformation technology as evidenced by the latter? Teriffic.
Global and industry specifc health and a historical record of what drives a great trasnaction are next. Of particular importance are competition and comparable transactions of similar firms or technolgies and terms.
Finally, finding the right representation is key consistent with yiur transaction sacle verus obviiusly a successful, recognized, well recommended team.
Creating an auction can be a solid strategy with a must have technology.
So, what do you have? I cannot say much more witout more information.

Adam Malofsky, PhD
37 months ago

Have some input?