Dr. Tom McKaskill
Breakthrough Publications, 2009, Australia. (279 pages, 1.9 MB)
Investors
in early stage ventures need to focus on strategic exits if
they are to achieve a high return on their investments.
This book explains the characteristics of strategic value,
how the investor should negotiate the investment and how
they should manage the process to a strategic trade sale.
The book includes a very detailed discussion on the
problems of high growth ventures, the unrealistic
expectations associated with IPOs and the advantages of
investing in strategic value ventures.
This book provides a detailed
examination of the investment and exit opportunities in
financial and strategic ventures. Underpinning the creation
of value in both of these ventures are the drivers of high
growth potential. In the case of a financial venture, the
business itself must create the business model to exploit
the growth opportunity. A financial business must build an
organization which is capable of creating, delivering and
supporting products and/or services in very high volumes.
The probability of creating a successful high growth
venture is very low due to the complexity of building out
such a business model. Only the most successful will be
able to drive the revenue and profit needed for an Initial
Public offering (IPO). Those which are not able to achieve
an IPO need to structure themselves for a financial trade
sale.
Businesses which create value by developing an asset or
capability which could be exploited by a large corporation
achieve an exit through a trade sale to a strategic buyer.
Strategic value is created through intellectual property or
deep expertise which creates a sustainable competitive
advantage in the hands of the strategic buyer. It is the
strategic buyer who exploits the growth potential through
an extensive distribution network.
The major recommendation in the book is that Angels and VC
investors should focus on strategic value investments.
These investments have very focused exit strategies which
generally have lower execution risks, shorter timescales
and higher returns than financial trade sale exits or IPO
exits.
The book provides a detailed analysis of the product or
service characteristics which create strategic value, a set
of guidelines for identifying strategic buyers and
processes for setting up the investment deal and the
strategic sale.
Included in the book is a detailed explanation for
preparing a business for a strategic exit.
The book has 15 chapters covering the following:
1. Begin with
the end in mind
2. High growth - high risk
3. Spot the IPO
4. Financial v.s strategic exits
5. Threats and opportunities
6. Identifying strategic value
7. Finding strategic buyers
8. Enabling the opportunity
9. Reducing risks to the buyer
10. Setting up the exit deal
11. Evaluating potential investments
12. Executing the exit strategy
13. Structuring the trade sale deal
14. Selecting professional advisors
15. Conclusion - impatient capital
Testimonials:
“This book is a must read for the
Angel Investors who wish to have profitable exits.”
John Mactaggart
Chairman, Australian Association of Angel Investors
“ Every entrepreneur seeking to work with outside investors
should first stop, read Invest to Exit, and then proceed.”
John May
Chair Emeritus, Angel Capital Association, USA
Co-author, “Every Business Needs an Angel” Crown
Business:2001
“Tom McKaskill’s insights into the ‘art of the exit’
provide a great roadmap for all Angel and Venture Capital
investors. “
Joe Platnick, Pasadena
Angels, USA
“This is a valuable read for the first
time entrepreneur or investor, as well as for those of us
with more experience.”
Jordan Green
Founder/Chairman Melbourne Angels,
Co-Founder/Deputy Chairman Australian Association of Angel
Investors
“Invest to Exit is a must read for the Investor looking to
maximize their returns from their private equity
investments.”
Andrew Loch
Chair Gold Coast Angels
CEO of the Gold Coast Innovation Centre
“This book emphasizes tactics-backed strategy and focuses
the reader on drawing the narrowest line between an
investable exit and the present.”
Matt Yallop
Repertoire Management, New Zealand
“In my view, the book should be compulsory reading for all
entrepreneurs and inventors who should work through the
book before fronting investors. “
Ergad Gold - Principal and
Executive Director
Momentum Investment Group
“This is compelling reading for investor and companies
alike as they work collaboratively to achieve a superior
result when they sell.”
Greg Sitters,
Sparkbox Investments Limited, New Zealand
“Tom is undoubtedly one of the foremost thinkers on what it
takes to achieve strategic value in a business. I
strongly recommend Tom’s latest book for all investors
looking to profit from a strategic value mindset.”
Barry Palte
CEO EQ Capital, Australia