The Harvesting and Exit Strategy of your Business - King Saud ...-ag

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The Harvesting and Exit Strategy of your Business - King Saud ...-ag Powered By Docstoc
					 King Saud University -- Kent State University

         Partners in Entrepreneurship




Survey of Entrepreneurship

                Class 26
 Growth or Exit Strategies
          26_Objectives

1. Learn ways to grow your business


2. Learn ways to harvest your business


3. Learn method of valuing a business
  for harvesting
        26_Interactivities
1. Teams will discuss whether to grow
   or harvest their business.


2. Teams will learn how to value their
   business for harvesting.
    Growing Your Business
Methods:
1. Generate internally
2. Acquire others
3. License your brand
4. Franchise the business
               Harvesting
What is Harvesting?

     As part of your business plan, it shows
      investors how they will earn back their
      investment in your business venture.

     An indicator of wealth creation.
               Harvesting
Three ways:

1. Sell your business

2. Take it public (Initial Public Offering, IPO)

3. Merge it with another.
How to Value Your Business to
     Harvest it profitably

Main methods to estimate the value of
your business:

    1)   Market Value of Net Assets
    2)   Value of Future Earnings
    3)   Off Balance Sheet Valuations
    4)   Replacement Cost
            Exit strategy

Four paths:

  1.   Acquisition
  2.   Earn Out
  3.   Debt-Equity Exchange
  4.   Merge
      Worst Case Scenarios

●   Liquidation

●   Closure

●   Bankruptcy
            26_Handouts
    26_H_Presentation_Expectations


This handout should be in your Instructor’s
    Guide and on the Class Web site.


If not, please ask the Course Coordinator
                about them.
             26_Handouts
26.1 Presentation Expectations


This handout should be in your Instructor’s
 Guide and on the Class Web site. If not,
 please ask the Course Coordinator about
 them.
           26_Homework
Use the Presentation Expectations handout


    26_H_Presentation_Expectations


 to prepare your team’s final presentation.
26_H_Presentation_Expectations
The period is 50 minutes long, therefore each team will
have a maximum of 25 minutes to present, including
time for questions and answers.

The order of presentation will be teams 2 and 3 on day
one and teams 1 and 4 on day two.

Each team member will be required to present a
portion of the team’s results. The presentation itself
will be done by way of power point slides, and any
other audio-visuals you feel will be helpful.
Questions




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posted:5/11/2013
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