Nottonson: What is the ‘exit strategy’ all about?

Exit strategies are discussed as much among small business people as it is with the corporate giants. Does it mean the same to both, or are there differences depending on the nature of the business and the investors? The answer is that it’s the same in many ways and different in many ways.

The people who invest big dollars in a company usually expect a substantial return on their investment within a relatively short period of time. Some venture capitalists, for example, will expect 20 times their original investment within a three-to five-year period.

Is this possible? If the business can show a potential for accelerated growth, there is the possibility of it being acquired by a bigger company. This acquisition often is based on what the company is likely to achieve.

Ira Nottonson

Full Story: http://www.dailycamera.com/bdc/business_plus/article/0,1713,BDC_2462_4963167,00.html