The Episode in 60 Seconds
Finding the right exit strategy for you and your company.
Getting the basics right
- Look beyond Switzerland for potential buyers
- If you can, get help from specialized M&A boutiques
- Broaden your shareholder base to get easy access to new markets and industries
Selecting the right partner and deal
- Institutional investors usually curtail the entrepreneurial freedom of the founder more strongly than non-institutional investors such as family offices.
- Aggressive growth often leads to the founders being left with very small stakes in the company once the time for an exit has arrived.
- Don’t select buyers based on valuation but based on their values aligning with yours. Don’t forget that most likely, you will still be obliged to work in your company for a few years after it has been acquired.
- The price of an acquisition is often split in a fixed part and a variable part, called earn-out, that gets paid out on defined targets and incentives over the duration of 1-5 years.
Timing
Depends on several factors:
- Can the company still realize significantly more growth in the future?
- Do you still have the passion and energy to drive the business forward?
Exit options
- M&A (Merger and Acquisition): Selling of the companies assets or shares. For smaller companies with revenue generally above $ 10m.
- IPO (Initial Public Offering): Listing of the company on a public stock exchange. Usually not feasible for revenue below $ 200m.
Don’t forget to give us a follow on our Twitter, Instagram, Facebook and Linkedin accounts, so you can always stay up to date with our latest initiatives. That way, there’s no excuse for missing out on live shows, weekly give-aways or founders dinners!
.webp)
.webp)
.webp)
.webp)