1) The exit strategy that I plan on executing involves growing the company for around 5 years until the user base is large enough to attract large public interest and then take the company public through an Initial Public Offering (IPO). The same management team would remain and shares of the company would be sold on the stock market. I would then plan to stay with company until retirement operating an executive role in the company. My returns for the company will come through my accumulation of shares which will hopefully increase in value as I grow the company over the years.
2) I have selected this exit strategy for multiple reasons. The first and foremost being that I want to remain in control of my company to a certain extent which is why a merger or acquisition is not ideal. By taking the company public with an IPO this will ensure that the same management remains and that I continue holding my position in the company. The second reason is that an IPO makes the company far more liquid and allows the company to later issue additional shares for sale on the public market. This can be used as a way for my company to raise funds and increase its value.
3) I think that this exit strategy is in line with decisions made from the beginning as this is a unique business idea and not something that I would just want to sell away. Going with the acquisition or merger route would mean relinquishing control over the company and decision-making power which is something that I have prioritized maintaining from the beginning. This strategy has not really influenced how I have identified opportunities or influenced growth opportunities. I am still trying to grow this business as much as possible regardless of which exit strategy I have chosen. Making the company more valuable is a goal regardless of how I plan on exiting the business.
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Hey Sam,
ReplyDeleteI like the exit strategy you have come up with as it is somewhat unique compared to what I have chosen for mine. I think it is a great idea that you still want to have a hand in the company and you do not want someone coming in and completely changing what you have worked so hard for. This exit strategy was definitely well thought out!
Hi Sam,
ReplyDeleteThis is a great strategy as it shows your confidence in the business idea. I don't have the same confidence in my business idea or that I want to be doing something else with my life in five years. My idea is not a passion of mine. Its awesome that that's not the case with you.