The Exit Strategy??

[dompie85]

I am putting together a presentation for investors and I have heard that most feel more "at ease" if provided with an exit strategy. Im not really sure how to structure an exit strategy as the business has the potential of creating massive amounts of RMR. So why would I want to leave or sell it? I wouldn't... But i'm sure they are looking for "if your idea doesn't go as planned" exit strategy. How do I structure something like that when my App company really has no assets?

 

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[SWB]

The exit strategy is in place because an investor wants to know when they are going to get their money back. There are usually 2 types of exit, a trade sale and ipo.

 

[SteveO]

A successful exit strategy is getting you or the investors their money back plus a tidy profit. This is what investors want to hear about.

I would not call a failed process an "exit strategy". But you do need to address what will happen if the business does not succeed.

 

[mrarcher]

So why would I want to leave or sell it? I wouldn't...

Nothing lasts forever and you'd more than likely live to regret not selling it for enough money to never have to work again and be financially secure enough to try other ventures. Do you really think an app company will last 40 years? 50?

 

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