Just as you don’t walk into marriage planning your divorce, investors usually don’t envision an end to a financial relationship at the outset. But Charlotte, NC-based Rick Siskey believes an exit strategy is essential to any new investment plan.
“Read the headlines,” Rick Siskey of Charlotte, NC says. “Companies are sold at a younger age than once upon a time.”
Citing the quick turnaround of so many tech businesses these days, Charlotte, NC’s Rick Siskey says an exit strategy is vital even for long-term investments. The exit strategy need not be complicated, Rick Siskey of Charlotte, NC says. In fact, it can be as simple or involved as the investor wants.
Complicated exit strategies, according to Charlotte, NC’s Rick Siskey, usually bring in sales tactics and value maximization. But many investors choose to go with simpler exit strategies, to avoid complicating what can already be an involved process.
Dates play a large part in simple exit strategies, according to Charlotte, NC’s Rick Siskey. If you have a date, you’re on your way, Rick Siskey of Charlotte, NC says. As an investment deal is being made, outline the target date of your planned exit, as well as the expected value of the company at the time of that exit.
This target date, Rick Siskey of Charlotte, NC explains, gives the business, as well as any potential future investors, an idea of a timeline. Charlotte, NC’s Rick Siskey advises investors not to be surprised if a company exceeds that goal.
“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,” Rick Siskey of Charlotte, NC tells investors.
Rick Siskey of Charlotte, NC reminds investors that the exit strategy must be discussed and affirmed by both the investors and the business. While there is no set blueprint for designing an exit strategy, Charlotte, NC’s Rick Siskey says the business and the investors must mutually agree on the strategy.
For more than thirty years, Rick Siskey has been dispensing financial and business advice in Charlotte, NC. A Charlotte resident for more than 25 years, Rick Siskey is chairman of Siskey Industries and founder of Wall Street Capitol.