“If you have a dream, a product idea and are planning to build a company there is an important component to keep in mind, and that is how to exit,” says Richard Siskey. Siskey, who has spent the greater part of thirty years developing, funding and selling businesses, believes that the market today demands an exit strategy. “Read the headlines; companies are sold at a younger age than once upon a time,” maintains Richard Siskey.
Richard Siskey is referring to several well-known global online companies that both sold for millions within two years of their establishment. “In the world of technology, companies come and go quickly,” points out Richard Siskey. And even if a company is going to be held longer than that time period, Richard Siskey asserts that the establishment of an exit strategy could be vital. “An exit strategy is just another step in doing business,” says Richard Siskey. And according to Siskey, this process needs to be done well.
“Exit strategies can be either simple and concise or complicated and detailed,” explains Richard Siskey. “Some more complicated exit strategies;” states Siskey, “may include sales tactics and maximizing values.” Richard Siskey adds that an effective exit strategy need not be complicated. “If you have a date and target price, you have an exit strategy,” explains Richard Siskey. The establishment of a date regarding the sale of a company gives owners and future investors an idea of a timeline, states Richard Siskey. “And then you need a target price of what the company will be worth at the time of exit,” notes Richard Siskey.
This target will become a goal in determining plans and strategy for that company, Richard Siskey states. Some companies will exceed their value goals. “Even in this crazy, wild west economy, it is not unheard of for a company with good leadership to set a goal to be at a certain value by a certain time, only to exceed that goal,” notes Richard Siskey.
While there is not a single right or wrong way to build an exit strategy, according to Richard Siskey it does have to work for the company at hand. “A board of directors and the founders have to agree to the final days of company ownership and management,” concludes Richard Siskey.
Richard Siskey is an angel investor and the Chairman of Siskey Industries, LLC. For more information, contact Richard Siskey at rsiskey@siskeyindustries.com.
About Richard Siskey
“If you have a dream, a product idea and are planning to build a company there is an important component to keep in mind, and that is how to exit,” says Richard Siskey. Siskey, who has spent the greater part of thirty years developing, funding and selling businesses, believes that the market today demands an exit strategy. “Read the headlines; companies are sold at a younger age than once upon a time,” maintains Richard Siskey.
Richard Siskey is referring to several well-known global online companies that both sold for millions within two years of their establishment. “In the world of technology, companies come and go quickly,” points out Richard Siskey. And even if a company is going to be held longer than that time period, Richard Siskey asserts that the establishment of an exit strategy could be vital. “An exit strategy is just another step in doing business,” says Richard Siskey. And according to Siskey, this process needs to be done well.
“Exit strategies can be either simple and concise or complicated and detailed,” explains Richard Siskey. “Some more complicated exit strategies;” states Siskey, “may include sales tactics and maximizing values.” Richard Siskey adds that an effective exit strategy need not be complicated. “If you have a date and target price, you have an exit strategy,” explains Richard Siskey. The establishment of a date regarding the sale of a company gives owners and future investors an idea of a timeline, states Richard Siskey. “And then you need a target price of what the company will be worth at the time of exit,” notes Richard Siskey.
This target will become a goal in determining plans and strategy for that company, Richard Siskey states. Some companies will exceed their value goals. “Even in this crazy, wild west economy, it is not unheard of for a company with good leadership to set a goal to be at a certain value by a certain time, only to exceed that goal,” notes Richard Siskey.
While there is not a single right or wrong way to build an exit strategy, according to Richard Siskey it does have to work for the company at hand. “A board of directors and the founders have to agree to the final days of company ownership and management,” concludes Richard Siskey.
Richard Siskey is an angel investor and the Chairman of Siskey Industries, LLC. For more information, contact Richard Siskey at rsiskey@siskeyindustries.com.