BLOG STARTUPS, VENTURE AND THE TECH BUSINESS

Posts Tagged ‘Liquidity’

March 30 2012
by Todd Hixon

An Insider Perspective On Carried Interest

Public dissection of Mitt Romney’s tax returns has put “carried interest” in the spotlight, but many people don’t know what carried interest is or why it’s there. A segment on the Marketplace radio program last week (link) brought this home for me. [IMHO, Marketplace is about the best business program on the radio.] I was ...

Read on and discuss (0)

February 3 2011
by Todd Hixon

When To Say Yes

2011 promises to be a good year for exits:  economy healthier, stock market up, IPO window open, big tech companies with strong earnings and cash piles. Expectations for sorely-needed big exits are rising.  I hope that happens.  But let’s stay sober. I’m struck by how often venture boards overplay their hands in M&A negotiations.  I’ve seen ...

Read on and discuss (0)

April 14 2010
by Todd Hixon

Three Ways To Sell A Business

Frequently entrepreneurs and investors come to the point where they want or need to find an M&A exit.  Is the time right?  What should they expect? Here’s a framework that I hope is helpful.  Buyers pay for three things:  strategic opportunity, growth, and earnings/cash flow.  Which of these you have to offer will influence who’s ...

Read on and discuss (3)

May 9 2009
by Todd Hixon

Liquidity Panel: TLH notes from NVCA annual meeting

Controversial suggestion:  extend lock-ups.  Data suggests that VC selling is a major drag on price during first two years (small cap IPO performance historically is pretty flat in first year, much better in second year).  Newhall from NEA:  average hold post IPO used to be 3 years, before the bubble.Few buyers for newly minted IPO ...

Read on and discuss (0)