Forums: Discussions for entrepreneurs and small business.

As one who seeks funding, I`m wondering what investors look for as an exit?  What is a good exit to offer to an investor so I don`t look as if I haven`t thought that far?

Furthermore, what do investors consider a good exit structure/strategy to a deal?

Jerik

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Cu Gelert - The Legend ... If you`d like to know the value of money, go and borrow some... It is especially hard to work for money that you`ve already spent, on things that you never needed... Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it!

I believe it depends on the deal. 

Are you looking for real estate investors?  A good "exit strategy" would be the payout of a completed project, with an opportunity to take their money and run or invest in the next project. 

Are you looking for investors for an on going business?  A good exit strategy may be that after x amount of years of collecting quarterly dividends they could opt to cash in their stock in the deal.

I hope that was clear enough for you. With a little more info I may be able to give a clear answer.

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Dr. LA www.SpiritofWealth.org Your purpose for your life is not written on some cloud in the sky; the blueprint is mapped in your Spirit, designed by your mind, and materialized by your actions ~ Dr. LA

Jerik,

I agree with DrLA that the exit strategy depends on the deal. I would add that it is PART of the deal. Although exit strategy is the commonly used term - I prefer to think with our clients about liquidity for their investors.

The way that you will bring liquidity back to your investors will affect the type of investor you attract.

Investors are not a homogeneous group (any more than customers are) – so you need to identify those that will be attracted to your situation and I`m not just referring to the "deal" you propose.  Investors invest for different reasons - one of which may be how their investment (and gain) is made liquid.

 

 

 

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

thanks robert and dr, it does help and clarify how I should structure an exit...
jerik


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Cu Gelert - The Legend ... If you`d like to know the value of money, go and borrow some... It is especially hard to work for money that you`ve already spent, on things that you never needed... Whatever you can do, or dream you can, begin it. Boldness has genius, power, and magic in it!