ENTP 3301 Lecture Notes - Lecture 12: Employee Stock Ownership Plan, Entp, Prototype 2
9 Sep 2016
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Document Summary
Commercial idea: seed lasts from idea to prototype, startup you have a product for sale, early growth product-market fit , rapid growth startups become news, exit. The process used by entrepreneurs and investors to reap the value of a business when they get out of it. Process involves: capturing value (cash value, reducing risk (partial sale, creating future options, throwing in the towel. Sales to employees: distributing cash flows, going public (ipo, using a private placement chosen investors. Sales to strategic buyers: purchase in which the value of the business is based on. Fits in the business: competition achieve more market share more money. Sales to financial buyers: buy business based on standalone cash and financial outputs alone, less confident about company, just an roi. Types of leverage buyouts: bust up leverage buyout (lbo) Lbo using firms assets as collateral and firms cash flow to pay debt. Bust up break up assets: build up lbo.
