Exiting

​

Whatever the stage of your company, investors will want to know what plans you have for their exit - how they can convert their ownership into cash, a cash equivalent (e.g. publicly traded stock), or other form of liquidity (the future ability to convert ownership to cash). Common examples are payment of dividends, a private sale of ownership, investor liquidation rights in successive rounds of funding, a merger or acquisition, and an initial public offering.

​

The number and timing of potential liquidation events can lower an investor's perceived risk which in turn can raise the offering's asking price. Again, a credible and balanced business plan will be needed to determine your company's current and future exit values. Investor rights, if any, within an offering will impact the structure and pricing of the offering.