In a recent TechCrunch interview with Martin Pichinson (@shrwood) of Sherwood Partners. Marty makes some excellent points including when asked what investors could be doing better in the face of a wind-down or sale: “I’ve been saying for years that VCs should be calling us in earlier.” I couldn’t agree more. Running a proper sale process for a startup or its assets/IP takes time. If management or investors wait until there’s only weeks of cash in the bank or a big loan payment due – then you lose the opportunity to package and shop the company. Once it becomes a fire-sale/liquidation then your chances for maximizing value are gone. If it looks like a wind-down may be in your future it is a good idea to bring an advisor into the process sooner rather than later – even if it is in the background. Work can be started preparing an offering and socializing an opportunity to the market even as you pursue Plan A.
Best to prepare if a wind-down or sale is in your future
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