Venture Planning Chapter 19 Dowling Fall 2005 The Harvest and Beyond Venture Planning Chapter 19 Dowling Fall 2005

The Harvest and Beyond

Harvest Strategy Guidelines Patience Realistic valuation Outside advise

The Harvest and Beyond First, Build a Great Company Create harvest options A harvest goal Creating a harvest strategy: Timing is vital Patience Vision Realistic Valuation Outside Advice

The Harvest and Beyond Harvest Options Capital cow Employee stock ownership plan (ESOP) Management buy out Merger, acquisition and strategic alliance Outright sale Public offering Wealth-building vehicles

Number of Recent IPOs Years 1996 through 2001 Source: Thomas Financial/Venture Economics and National Venture Capital Association, January 7, 2002.

Recent IPO ($ Millions) Years 1996 through 2001 Source: Thomas Financial/Venture Economics and National Venture Capital Association, January 7, 2002.

Success in the Entrepreneurial Process Two habits necessary A passion for achieving goals A relentless competitive spirit and desire to win

The Harvest and Beyond A Journey, Not a Destination The thrill of the chase. Most entrepreneurs plan not to retire, and would do it again – only sooner. For the vast majority of entrepreneurs, it takes 10, 15, even 20 years or more to build a significant net worth.

The Harvest and Beyond Beyond the Harvest College endowments Community activities Investing in new companies

The Harvest and Beyond Final Words from Timmons Innovation, job creation, and economic renewal and vibrancy are all results of the entrepreneurial process. The complicated and little understood process is not caused by government, though it is facilitated and/or impeded by it . . . The process is created by entrepreneurs, investors, and hard-working people in pursuit of opportunities.