01 PRIVATE EQUITY | BDO LLP
STAY OR SELL: IS THERE A MIDDLE- GROUND? REASONS TO REVALUATE Tech founders often take time to reflect around key moments: Age: You reach a milestone birthday – it used to be 50 or 60, but these days it’s just as likely to be 40 – and start to wonder whether it’s time to retire or try something else. Health: The rigours of running a business, wearing different hats and bearing a lot of responsibility can take their toll, especially if you have any personal or family health issues. Family circumstances: A family issue is another obvious trigger to give a tech founder pause. If you’re hoping to spend more time with family, you may look to find a good work/life balance (and reap financial benefit for your dependents) by selling up. What’s it worth? Another existential moment for a tech founder is realising you are wealthy but it’s all tied up in the business. This can trigger an urge to diversify so you have more to show for all your hard work. A potential investor or buyer: Buyers and investors are
It’s often said that tech founders spend all their time in the business rather than on the business. You’ve got your head down, dealing with the priorities in front of you; there isn’t always time to look beyond the next 12 months. With all your time and energy going into your business, you may start to revaluate things. You may even wonder about selling up. But is it a passing thought or an indication of something more serious? Before you make a hasty decision, look at why you might want to sell. And if you do decide it’s time to change, what are your options? There could be a middle way between the two obvious choices of staying on, or exiting.
We explore some of the typical things that make tech founders consider an exit.
Made with FlippingBook HTML5