< Browse > Home / Archive by category 'M&A Series'

| Mobile | RSS

How to Build an Exit Strategy

Exit strategies for technology companies are like sex in high school – everyone talks about it but only a few are doing it right. The objective of this post is to layout a basic approach your company can use to achieve a successful exit. There are three major components to an exit strategy: 1) Understanding Exit Options, 2) Identifying Likely Exit Scenarios for Your Firm, and 3) Developing and Working a Specific Exit Plan. The post also includes a model you can use to estimate the value of a strategic acquisition, leveraged recap, sale to a minority investor, sale to a financial sponsor, or conversion of your business to a cash flow / lifestyle model.

How to Build an M&A Strategy

This post presents a basic primer on how to develop an M&A strategy for your company.  If your company is interested in leveraging mergers, acquisitions, or divestitures you should have a basic strategy that has been documented and reviewed/approved by key stakeholders such as the executive team, board of directors, key investors, and debt holders.  […]

[ More ] September 10th, 2009 | Comments Off on How to Build an M&A Strategy | Posted in Financial Literacy, M&A Series, Management, Private Equity, Venture Capital |

Everything You’ve Ever Wanted to Know About Mergers, Acquisitions, Divestitures, & Exits . . . but Were Afraid to Ask

Cisco, Google, IBM, Oracle & Microsoft are masters of the tech M&A game. They have the teams, financial resources, and connections to effectively leverage acquisitions to drive huge growth in their revenues and shareholder value. What about the rest of us? Many small to mid-sized tech companies, however, do not have a lot experience or expertise in mergers, acquisitions, divestitures, or exits. As a result, they tend to shy away from using classic corporate development techniques to grow the value of their business or to achieve a significant exit. Over the next six weeks DevelopmentCorporate is going to publish an eleven part series that is designed to provide a basic introduction to corporate development techniques. The topics include how to build an acquisition strategy, an exit strategy, how to analyze an acquisition candidate, and even how to pitch an acquisition to a board of directors, private equity firm, or VC.
This series begins with calculating the enterprise value of your firm. Decisions about mergers, acquisitions, divestitures, and exits are typically made in context of your firm’s enterprise value. If your company is public, calculating enterprise value is a piece of cake – most stock quoting sites do it for you. If your firm is privately held you need to do a bit more leg work, but you can develop a reasonable estimate in less than an hour. The balance of this post walks you through the steps in the calculation and where you can readily obtain information about comparable firms in your industry.


Warning: fopen(/4255305384_8e90aec34c_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
carriedint3
Warning: fopen(/4255305348_5022eca28d_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
carriedint2
Warning: fopen(/4254540579_b296f43c7b_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
carriedint1
Warning: fopen(/4255305256_2b68d522d5_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
Money machine
Warning: fopen(/4254540331_8836e369cc_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
manrev2
Warning: fopen(/4255305016_138cd3d3eb_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
ManRev1
Warning: fopen(/4255304954_48dd4292dd_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
idea2
Warning: fopen(/4255304438_ed7edfa4a2_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
chain-links2
Warning: fopen(/4254539541_30a19becda_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
ipasplash
Warning: fopen(/4254539317_1e015d3629_s.jpg) [function.fopen]: failed to open stream: Read-only file system in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 187

Warning: fwrite() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 189

Warning: fclose() expects parameter 1 to be resource, boolean given in /nfs/c02/h05/mnt/20615/domains/developmentcorporate.com/html/wp-content/plugins/flickr-rss/flickrrss.php on line 190
ipasplash