crafting the exit plan that helps startup investors say yes
TRANSCRIPT
Crafting the Exit Plan that Helps Startup Investors Say “Yes”
Todd McWhirterAngel Investor
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.
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.
Types of Exits (How Investors Make Money)
1. Dividends2. Sale of company3. Stock buyback4. Going public
© CBM Confidential
Dividends
• Appeals to many investors
• Detailed and credible expense and revenue projections
• “Same Page” philosophy is a must
• Enables all other exit scenarios
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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
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Stock Buybacks
• Can be good for niche investments
• ROI vs. risk (some exceptions apply)
• Natural conflict of interest
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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
Our Guest Today
Todd E. McWhirter
Managing PartnerOldham Beckley Investment Group
http://linkd.in/1DKqWJX
Center for Business Modeling
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