crafting the exit plan that helps startup investors say yes

10
Crafting the Exit Plan that Helps Startup Investors Say “Yes” Todd McWhirter Angel Investor

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Page 1: Crafting the Exit Plan that Helps Startup Investors Say Yes

Crafting the Exit Plan that Helps Startup Investors Say “Yes”

Todd McWhirterAngel Investor

Page 2: Crafting the Exit Plan that Helps Startup Investors Say Yes

Presenters

Our Guest

Todd McWhirter has been an investor in startups for 18 years. During this time he has analyzed more than 300 startups, raising more than $13 million for both his and others’ ideas. This adventure has brought him both devastating failure and wild success.

Your HostNate Warren is the host of the Business Planning Expert series and a marketing/advertising/PR writer and editor with more than 25 years of experience across newspapers, startups and agencies.

Page 3: Crafting the Exit Plan that Helps Startup Investors Say Yes

Your Exit Strategy Requires Detail and Realism:

If the investors do not understand and believe that they will get out the back door, they will never, ever enter the front door.

Page 4: Crafting the Exit Plan that Helps Startup Investors Say Yes

Types of Exits (How Investors Make Money)

1. Dividends2. Sale of company3. Stock buyback4. Going public

© CBM Confidential

Page 5: Crafting the Exit Plan that Helps Startup Investors Say Yes

Dividends

• Appeals to many investors

• Detailed and credible expense and revenue projections

• “Same Page” philosophy is a must

• Enables all other exit scenarios

© CBM Confidential

Page 6: Crafting the Exit Plan that Helps Startup Investors Say Yes

Selling the Company

• A focus on detail and profit in pro forma to attract buyers

• Comparable sales in your arena

• Sell your team and your board: Investors are more interested in this than your big idea

© CBM Confidential

Page 7: Crafting the Exit Plan that Helps Startup Investors Say Yes

Stock Buybacks

• Can be good for niche investments

• ROI vs. risk (some exceptions apply)

• Natural conflict of interest

© CBM Confidential

Page 8: Crafting the Exit Plan that Helps Startup Investors Say Yes

Going Public

PROS• Prestige and awareness• Potentially massive ROI• Attract top talent, partners

and money• Cash for acquisitions or

scaling strategy

CONS• Not for first-time entrepreneurs• Stock performance risks• Surrender control• High level of scrutiny

© CBM Confidential

Page 9: Crafting the Exit Plan that Helps Startup Investors Say Yes

Our Guest Today

Todd E. McWhirter

Managing PartnerOldham Beckley Investment Group

http://linkd.in/1DKqWJX

Page 10: Crafting the Exit Plan that Helps Startup Investors Say Yes

Center for Business Modeling

View the entire Business Planning Expert Series

https://www.centerforbusinessmodeling/expert-series/

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