Selling a Business - A Guide for Angel Investors and Entrepreneurs

Selling a Business Guide Part 1

Highlights of Part 1 - Introduction to the Selling a Business Guide

• Angel investing is still quite new - at about the same stage as Venture Capital investing was in the mid 1980s
• The financial world has been changing - dramatically
• Successful investing requires two things - investing in the right companies at the right price and selling the business well
• Exiting well means selling a business at the right price but also in a reasonable amount of time

Selling a Business Guide Part 2

Highlights of Part 2 - The Exit Process, Selling the Business for 50% more

• The steps to completing a successful exit transaction
• Why it's important to engage professionals and why the CEO should not lead the exit
• The exit is just another business process - every company needs an exit strategy
• Term sheets create exit alignment and vesting is the most important term
• Who are the buyers for tech companies today?
• Corporate buyers are often the fiercest competitors for traditional Venture Capital
• Today, companies are often acquired just two or three years from start-up

Selling a Business Guide Part 3

Highlights of Part 3 - The M&A Advisor and Getting Ready to Sell the Business

• The most important criteria for selecting the M&A Advisor and the M&A Advisors functions
• M&A Advisor fees and why the M&A Advisor should be local
• The benefits of doing a secondary sale before the exit and the exit timeline
• Things to do before contacting the first prospective buyer - clean up the structure, employment agreements
• Financial statements - review or audit, the financial model, tax considerations, the sales collateral

Selling a Business Guide Part 4

Highlights of Part 4 - The Sales Funnel and Ways to Maximize the Selling Price

• The sales funnel and ways to maximize the final selling price of the business
• Structural value increase, illuminating strategic value, capitalizing on inefficient markets
• Why you always need multiple bidders and the importance of the selling skill of the M&A Advisor
• Reps and warranties, the closing process, entrepreneurial recycling and other resources about selling businesses