Your Exit Strategy
28A - Your Exit Strategy
1) Identify Exit Strategy
I plan to build Prescription Place into a big and successful pharmaceutical technology company, valued at around 25 million dollars. That would essentially be the target valuation after five years. Hopefully, the company would have attracted attention from larger corporations that desired to acquire Prescription Place, because it would be valuable and unique to the market.
2) Why Have You Selected This Particular Exit Strategy?
I selected the “build and sell” strategy because of the extra benefits granted in the actual sale of a company. The payout would be enough compensation to live comfortably and reinvest in a new venture to grow and hopefully sell again in a continuous cycle of gain. Also, building a company to sell in a relatively short period of time gets the stress off of your shoulders as a founder, because you are passing the responsibilities of the company, litigation, marketing, accounting, human relations, etc. off to the business that wants to take over (and with good reason).
3) How Has This Influenced Other Decisions?
My decision to grow and sell has influenced other decisions at Prescription Place in terms of scalability and trajectory. To become valuable enough to sell for 25 million dollars, the company has to be smart financially and grow fast. Therefore, a more aggressive business strategy would be pursued by the business from the start. An emphatic marketing campaign and push to sell our service to our target market would increase our chances of attracting revenue sooner rather than later. Time would most definitely be of the essence.
Hi Jenna,
ReplyDeleteI like your exit strategy plan. I had similar thoughts that it would be good to get out fairly early and take the money and let someone else take over and build on whats already there. I also like your number of 25 million. That would surely set you up for life. I also like how you would start something new again and not just sit back on what you have. Good luck in everything you do in the future.
Excellent Post!
Jenna, I 100% agree with what you said about reinvesting and continuing to grow your business. I chose the same exit strategy and thought about expanding my business into offering other products/services that would be related to health. Some people after 5 years would be satisfied with the amount the business has generated, but I do feel long-term wise, you would reap the benefits more.
ReplyDeleteMichelle Lam
Great job! You gave a pretty detailed exit strategy, and answered most of the questions. There aren’t many questions I have on the exit strategy. I see you’re planning to eventually sell it, and I think it’s hard to see how you’ll enjoy developing the business over the years. Perhaps, you’d eventually not want to give it away once it’s established. I like that there’s a solid number on the evaluation of the company, and reasoning behind your strategy.
ReplyDeleteHey Jenna!
ReplyDeleteI really love the energy in all your posts from the graphics you use. It really gives such a positive feel to your post before reading even one word. In terms of your exit strategy, I agree with your choosing of build and sell. The pharmaceutical world is constantly changing and being able to create a need and then have someone else take over means you don't have to worry about being the top forever which takes a lot of dedication and time. With tech if you aren't a hardcore programmer it definitely makes sense to sell.