The Harvesting and Exit Strategy of your Business
Harvesting What is harvesting? It is part of your business plan To show investors how they will earn their investment in your business venture. It is an indicator of wealth creation
Harvesting Three ways: 1.sell your business, 2.take it public (Initial Public Offering, IPO) or 3.merge it with another.
How to Value Your Business to Harvest it profitably Main methods to estimate the value of your business: 1)Market Value of Net Assets 2)Value of Future Earnings 3) Off Balance Sheet Valuations 4)Replacement Cost
Exit strategy Four paths: 1.Acquisition 2.Earn Out 3.Debt-Equity Exchange 4.Merge
Worst Case Scenario Liquidation, Closure, Bankruptcy
Activity Develop and present scenarios for best case, worst case, and most like situations for your business concept