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Exit Strategies for Angel Investors - Part 1
Highlights of Exit Strategies for Angel Investors - Part 1:
- My background to put my comments in perspective.
- Organized angel investing is still quite new - only ten or twelve years old.
- Successful investing requires two things - buying right and exiting well - a lesson I learned late (and expensively).
- There is lots of doom and gloom about exits in the media - and it’s true that the big exits aren't happening very often now.
- The big ‘new story’ is the large number of small and medium size exits - and they’ve held up well during the recent recession.
- Most private company M&A transactions are under $20 million - and probably under $15 million.
- Big companies know they aren’t good at new ideas or startups, but they are good at growing values from $20 million to $200 million.
- These big companies have lots of cash - many are spending more on M&A than on R&D. It’s the best way for them to grow.
- Even for the very biggest companies - a $100 million acquisition is already out of their ‘sweet spot’.
- The ideal size for big companies to acquire is $10 to 30 million.
- Companies are being acquired earlier and earlier - often just a couple of years from start-up.
Part 2 of this video is online here.
Many of these lessons are described in my new book on exit strategies for entrepreneurs and angel investors - www.Early-Exits.com.
Part 2 of this video is online here.
