Exit strategies
Article Abstract:
Private investors need to think in terms of building value and allowing companies to progress to new stages of financing and growth. Recapitalizations can be used as a halfway house measure, when investments can develop further. Trade sales and flotations can be used for companies that have attained public market size. Investors should ensure that they do not overvalue portfolios, and trade sales may be a better option for smaller firms than stock flotations, since smaller firms tend not to be valued by the market.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Going, going, gone by the board
Article Abstract:
Negotiations between corporate sellers and venture capitalists are becoming increasingly common where large companies are involved. This allows the company to feel it is obtaining a better valuation for the assets to be sold, and communication is improved through direct negotiations with buyers. Management is also able to focus on managing the business. There is still a case for management to be involved in discussions so that realistic bids are made that can tap value in assets to be sold.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Graceful exits
Article Abstract:
Returns generated by venture capital companies when they exit an investment are crucial as a criterion of success, yet more attention is paid to the start of investments than to exits. Trade sales accounted for 55% of exits from management buyouts and buy-ins in 1997, and the main stock market is an attractive route where bigger companies are involved. Secondary buyouts are also growing in importance, and involve another venture capital company taking over the investment.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic: