Utah Technology Council Sets Up A Great Exit
One of the downsides of many business lunches or breakfasts is the lack of specifics. A successful entrepreneur tells you the keys to success. Pick a great idea, execute well, get the right financing and sell for a grundle of cash. The only question at the end of the meal is how do I know a great idea? . . . and how to I execute well? . . . and how do I know what the right financing is? . . . and how do I find someone who wants to make me rich buying my company.
This mornings' Utah Technology Council's Breakfast "Exit Strategies: Lessons Learned" was just the opposite. David Carter, CEO of S5 Wireless (formerly of Vertical Technologies and Thoughtstar) and Brad Walters, CEO of EarlyRun, LLC (formerly of MaxStream) discussed their adventures in selling companies. While both pointed out where they did things right, they also pointed out areas where there had made mistakes or were simply blindsighted by issues they had not anticipated.
Both David and Brad identified traps in the process and how to avoid them in doing deals. A number of points that seemed important:
1. Get your house in order before you look to sell. Even if you do, it will be a grueling process, but survivable.
2. Look for the right fit for your company - compatible company culture and product lines, rather than the person that initially offers the most money. In the long run, it will be a better deal.
3. Conduct an employee audit and make any hires and terminations that are needed before the company goes on the block.
4. Keep the trust of your employees, both as to the status of the deal (false denials will cost you) and making sure that key employees are rewarded for their work.
5. Exercise because a sale of a company compacts a years worth of work into 3-4 months.
6. Make sure you will have liquidity after the sale.
Thanks for the insight.
This mornings' Utah Technology Council's Breakfast "Exit Strategies: Lessons Learned" was just the opposite. David Carter, CEO of S5 Wireless (formerly of Vertical Technologies and Thoughtstar) and Brad Walters, CEO of EarlyRun, LLC (formerly of MaxStream) discussed their adventures in selling companies. While both pointed out where they did things right, they also pointed out areas where there had made mistakes or were simply blindsighted by issues they had not anticipated.
Both David and Brad identified traps in the process and how to avoid them in doing deals. A number of points that seemed important:
1. Get your house in order before you look to sell. Even if you do, it will be a grueling process, but survivable.
2. Look for the right fit for your company - compatible company culture and product lines, rather than the person that initially offers the most money. In the long run, it will be a better deal.
3. Conduct an employee audit and make any hires and terminations that are needed before the company goes on the block.
4. Keep the trust of your employees, both as to the status of the deal (false denials will cost you) and making sure that key employees are rewarded for their work.
5. Exercise because a sale of a company compacts a years worth of work into 3-4 months.
6. Make sure you will have liquidity after the sale.
Thanks for the insight.
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