This document provides an overview of practical exit planning strategies for entrepreneurs. It discusses different exit options like IPOs, trade sales, operating as a zombie firm, and liquidation. For IPOs, it notes that very few companies go public and many are rigged. For trade sales, it emphasizes focusing on the perceived value rather than just the multiplier. It also notes that zombie firms, while boring, are important for the economy. For liquidation, it states that bricks and mortar assets are easily sold. The document stresses that exit planning should start from the beginning and entrepreneurs need to know when to end their involvement and understand the costs of prolonging their role in the business.

1. EXIT
Practical Exit Planning
for Entrepreneurs
Selena Sol presents…..
selena@selenasol.com
http://www.linkedin.com/pub/eric-tachibana/0/33/b53
http://www.slideshare.net/selenasol

2. why
how
when

3. you > this one idea

4. $100 million on
paper is $100 million
of the wrong kind of
paper

5. most 49ers wound
up dead of
pneumonia in a
stream bed

6. Greed

7. Growth

8. Exhaustion

9. Failure

10. why
how
when

11. IPO
Trade Sale
Zombie Firm
Liquidation

12. IPO’s
• Selling a dream means building /
buying a dream
(and keeping a promise – is it really an ‘exit’?)
• 0.25% of companies are public
(Of those, how many do you think are
rigged?)
* wiki.answers.com

13. Trade Sales
• Shoot for where they will be (but
date a bit)
• Love the Borg – be easy to
assimilate
• Don’t focus on the multiplier, focus
on the perceived value
• There are the quick and there are
the dead

14. Zombie Firm
• Zombie firms may seem boring, but they
are the economy
• Willy Wonka says due diligence & open
options are key when selecting
successors
But maybe he forgot to consider an oompaloompa
buy-out option
• Sustainability is about the firm, not the
people

15. Liquidation
• Bricks and mortar are easily
sold to other builders

16. why
how
when

17. exit starts at birth…

18. know when
to fold ‘em…

19. know the cost of holding ‘em…

20. Year 0 - 1
Start-up
Year 1 - 2
Scale-up
Year 2 - 4
Consolidate
Year 3 - 5
Exit
Plan for
exit
Build for
exit
Prep for
exit
Execute
exit

21. now let’s chat…

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