Pwc exit presentation mac leod-may 15 2012

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Slides from a talk at PwCs Vision to Reality Conference

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Pwc exit presentation mac leod-may 15 2012

  1. 1. M & A Breakout Mark MacLeod @startupcfo
  2. 2. Intro
  3. 3. Real Ventures $2.5M Discover Stud Develop ents EntrAccelerator Program Display Exp epre neu rs $47.5M ert An s& Me Co gels & nto Se ns VC rs rv ulta s ice nt Iterative Seed Stage Fund Pa s Capital rt ne rs Commercial Proof Points Acquisition Opportunities
  4. 4. M & A: VC Perspective‣  Why do VCs invest?‣  VC Fund Math‣  $ 50M Fund -> $ 150M returned ‣  10% - 20% average ownership at exit ‣  $ 750M - $ 1.5B exit proceeds‣  All about the exit
  5. 5. M & A: When to Sell‣  Considerations: ‣  1st time ‣  What’s “best” for the product / vision? ‣  Stakeholder interests? ‣  Gut ‣  Market / economy ‣  # of years risk taken off the table
  6. 6. M & A: Good vs. Great Exits‣  Momentum & pace‣  Market leadership‣  Unbelievable tech team‣  Highly visible‣  Existing relationships‣  Potential for disruption‣  Luck & timing
  7. 7. M & A: Profitable Exits‣  Small amounts of Capital‣  Speed matters‣  In the deal flow‣  Disruption‣  Timing
  8. 8. M & A: The Acqui-exit‣  Most exits are modest‣  Big tech giants struggling to hire and innovate‣  Key decision point for VCs early on ‣  Do we continue to invest?‣  Seed execution is more important than ever
  9. 9. M & A: Getting Buyers‣  Build relationships ‣  Product Dev ‣  Corp Dev ‣  Biz Dev‣  Airmiles -> Valley‣  Work your stakeholders‣  Non stop hustle
  10. 10. M & A: Alternatives to Exit‣  Secondary Sale‣  Raise more $‣  Management team
  11. 11. M & A: Role of VCs‣  Intros (& lots of them…)‣  Sounding board‣  Board Committee‣  Help on diligence‣  Increase the price Don’t worry about “blocking” rights
  12. 12. M & A: Tips & Tricks‣  Be organized (always) ‣  Have the right advisors‣  Be wary of agents‣  Avoid earn-outs‣  Cap tables are malleable‣  Make the buyer pay for retention
  13. 13. M & A: Case Studies Motivated buyer Timing Relationships Market leadership
  14. 14. M & A: Final thoughts‣  Great time to be an entrepreneur‣  More and more exits happening in Canada‣  We need the 2nd generation of founders‣  Know what success means to you and what type of outcome you want *before* raising VC

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