Most people have difficulty believing that you can sell a business for 50% more just by executing the exit well. I've written before about how this can be achieved. This post has video excerpts where you'll see CEOs and Chairs who have actually done it.
It is very unusual to hear case studies ...
In earlier days, entrepreneurs dreamed of founding an innovative start-up and building it into a big company. After many years of solid sales and profits, the company might be acquired, with founders and investors earning a capital gain.
But in today's fast-evolving technology marketplace, growing a small start-up into a big company may not be the best strategy. An increasing number of promising start-ups are exiting early at very attractive valuat...
It's rare to be able to post a detailed case study on an early exit. The most interesting information is usually restricted by a non-disclosure agreement. This is a very valuable opportunity to hear directly from the Chairman and a lead investor about what went on behind the scenes in this $30 million pre-revenue exit.
These videos complement the complete written Read More
The most interesting way to learn about any business process is to study real world examples of what other companies have done. When you want to learn about how to sell a business, the really interesting information - for example the purchase price - is not usually disclosed.
Fortunately, in situations where either the buyer or seller are public companies, all of the high level data is in the public domain.
The case studies in this section descr...
The ‘original’ founder of Parasun was Barry Carlson. Barry is one of the pillars of our local tech community. He founded and ran a number of local tech companies. Barry is credited with founding the BC Technology Industries Association, by far BC’s largest tech trade association. He launched Parasun in 1996 as a dial-up ISP.
I believe Steven MacDonald ...
The acquisition of Sunaptic by Visiphor is another good example of how multiple bidders can increase the final price by 50% or more.
Sunaptic was run by two equal partners, Mike Hilton and Jame Healy. They’d worked in an earlier company I’d invested in and I had a high regard for both of them. They offered to buy me lunch in return for some advice on an unsolicited offer they had received to buy their company.
Mike and Jame grew Sunaptic...
Helge is the most recent university student I have helped become a millionaire.
I invested three times in Helge's company. My BC Tech Fund was the first fund to invest. When I invested the first time there was only Helge and one other person on the company payroll. This is a summary of Helge's story.
Helge came to Canada in 1998 when he was 19 years old. He completed high school, and an obligatory year in the military, in...
Strategic value can make all the difference between success and failure
Occasionally an exit goes much better than anyone dared to hope. This is the story of how the PCS Wireless exit worked out exceptionally well for some of the participants even after the company looked like it wasn’t going to be a success.
The Call That Started It All
After five or six years of consistent success, the board of Read More
I started my first company, Nexus Engineering, when I was still a grad student. A little over ten years later, the board decided it was time to sell. The company was the second largest manufacturer of cable TV headends in the world. The number one and number three in our vertical were Fortune 500 companies.
Our Exit Strategy
Our exit strategy was to sell our company to a Fortune 500 company in the defense business. At that time th...