How To Run The Exit Process For Your Startup - Anshuman Bapna, Ex-CPO Makemytrip, Goibibo

TL;DR

Start planning the exit process early, run it like a structured process, involve investors and employees, and optimize for long-term financial and mental well-being.

Transcript

okay so let me talk a little bit more about how to run an exit process and you know in my case it turned out that we first of all the most important thing was to actually start on time you can't start to plan an exit process when you have three months of cash left because by that time it's already late we started 19 months in the in advance and sec... Read More

Key Insights

• 👻 Starting the exit process early allows for more options and better decision-making.
• 🗯️ Running the exit process like a structured process increases the chances of finding the right buyer.
• ❓ Involving investors and employees early on promotes transparency and avoids potential conflicts.
• 🍉 Optimizing for long-term financial and mental well-being is crucial in an exit process.
• 💦 The work culture and growth opportunities at the acquiring company play a significant role in the success of the exit.
• 🏛️ Building relationships with potential buyers is essential for creating option value.
• 😮 Surprises and conflicts can be avoided by transparently communicating the reality of the situation.

Questions & Answers

Q: At what point should a company start planning the exit process?

It is crucial to start planning the exit process early, ideally at least 19 months in advance, to avoid running out of time and options.

Q: How should the exit process be approached?

The exit process should be approached as a structured process, using a spreadsheet to identify potential buyers and building relationships with them to create option value.

Q: Why is it important to involve investors and employees in the exit process?

Involving investors and employees ensures that everyone understands the reality of the situation, avoids surprises, and aligns expectations with the potential outcomes of the exit.

Q: What should be optimized for in an exit?

The focus should not only be on the financial value of the exit, but also on the long-term well-being of you, your employees, and investors. Consider the work culture and growth opportunities at the acquiring company.

Summary & Key Takeaways

• Start the exit process early, at least 19 months in advance, to ensure enough time for planning and exploring various options.

• Approach the exit process as a structured process, creating a spreadsheet with potential buyers and building relationships with them.

• Involve both investors and employees in the exit process, ensuring transparency and understanding of the reality of the situation.