Posts Tagged ‘Liquidity’

February 3 2011
by Todd Hixon

When To Say Yes

2011 promises to be a good year for exits:  economy healthier, stock market up, IPO window open, big tech companies with strong earnings and cash piles. Expectations for sorely-needed big exits are rising.  I hope that happens.  But let’s stay sober. I’m struck by how often venture boards overplay their hands in M&A negotiations.  I’ve seen ...

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April 14 2010
by Todd Hixon

Three Ways To Sell A Business

Frequently entrepreneurs and investors come to the point where they want or need to find an M&A exit.  Is the time right?  What should they expect? Here’s a framework that I hope is helpful.  Buyers pay for three things:  strategic opportunity, growth, and earnings/cash flow.  Which of these you have to offer will influence who’s ...

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May 9 2009
by Todd Hixon

Liquidity Panel: TLH notes from NVCA annual meeting

Controversial suggestion:  extend lock-ups.  Data suggests that VC selling is a major drag on price during first two years (small cap IPO performance historically is pretty flat in first year, much better in second year).  Newhall from NEA:  average hold post IPO used to be 3 years, before the bubble.Few buyers for newly minted IPO ...

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