Reposted from the NACO blog – Jun 8, 2009
Exits have become a very hot topic, for obvious reasons, in the international Angel investor community over the last year. Canada’s own Basil Peters recently released a book on the topic, titled Early Exits: Exit Strategies for Entrepreneurs and Angel Investors (But Maybe Not Venture Capitalists). I have just received my copy, but from what I have read so far I am quite impressed.
Over the weekend another book on Angel investor exits came to my attention, put out as a free eBook by Dr. Tom McKaskill, called Invest to Exit – A pragmatic strategy for Angel and Venture Capital Investors.
This book provides a detailed examination of the investment and exit opportunities in financial and strategic ventures.
Underpinning the creation of value in both of these ventures are the drivers of high growth potential… The major recommendation in the book is that Angels and VC investors should focus on strategic value investments. These investments have very focused exit strategies which generally have lower execution risks, shorter timescales and higher returns than financial trade sale exits or IPO exits.
The book provides a detailed analysis of the product or service characteristics which create strategic value, a set of guidelines for identifying strategic buyers and processes for setting up the investment deal and the strategic sale.
The focus of both of these books reinforces the fact that Angels need to focus on exits, the more strategic the better, from the very earliest stage of due diligence and investment . Hopefully, with the guidance of both of these books, both Angels and entrepreneurs will enjoy “more successful, more frequent and more profitable exits“.
Dr. Tom McKaskill, CPA
Global serial entrepreneur, consultant, educator and author, Dr McKaskill has established a reputation for providing insights into how entrepreneurs start, develop and harvest their ventures. Acknowledged as the world’s leading authority on exit strategies for high growth enterprises, Dr. McKaskill provides real world experience with an educator’s talent for explaining complex management problems that confront entrepreneurs. Recently retired from the Richard Pratt Chair in Entrepreneurship at the Australian Graduate School of Entrepreneurship, Dr. McKaskill is the author of a range of books for entrepreneurs covering such topics as new venture growth, raising venture capital, selling a business, acquisitions strategy and angel investing.