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Exit Strategies for investors

 
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idaho

posts: 13

Jul 10, 2008 11:57 AM ET    Quote  Report Abuse
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Fastventrures, great questions and thanks for checking out the site and providing feedback.

I do have a powerpoint presentation but it could use some fine tuning to really tighten it up.  I also have a fully built out business plan and financial plan projecting 5 years of operation and growth.  Like writing a novel I`m experiencing writers block on how to end the business plan and that involves exit strategy for most involved.  

I have my next advisory board meeting on Monday the 14th where we will be looking very closely at the financials and the investor presentation.  I have a really strong board with a former GE exec, a COO of a prominent internet retailer, two marketing people, a wholesale beer and wine distribution specialist and my accountant.  They`ve been really great to work with and very helpful but they all have a different idea about how you handle liquidity events and exit strategy at the proposal stage.

I don`t want to miss the forest for the trees with too much focus on exit strategy because you`re right, the important thing is to be prepared and to have access to potential investors.  But at the same time, I need to be able to explain how they will make money from entrusting Brewtopia Beer Market with their money.

Rick
www.brewtopiabeermarket.com


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Drink Up!
FastVentures

posts: 306

Jul 11, 2008 1:26 PM ET    Quote  Report Abuse
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Rick,

At his point it’s probably most important for you that potential investors are comfortable with you, your team, and your professional background. Again, an exit strategy is an important component of any investment proposal; however, given the opportunity to franchise your concept later on, always provides for a variety of potential exit scenarios, such as a stock-buy back program.

Anyways, no matter how much more time you spend on developing such an exit scenario, potential investors will have to buy it based on its face value because it will be more or less educated guesswork. Get an idea of the so-called terminal value of your company in year 5 (if everything goes according to your plan) and be prepared to defend that with some comparables (financials of companies similar to yours). That should do the trick.

As far as your PowerPoint presentation and business plan is concerned, I’m willing to take a look at it over the weekend and provide feedback on it.

Just IM me if you’re interested.


Mark



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Jackson Steiner
http://www.JacksonSteiner.com

Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.
http://www.Publications.FastVentures.com
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