Preparing A VC-Backed Company For An Exit Event

Initial public offerings (IPOs) and M&A exits are the two most common means of achieving liquidity in a private company. This article addresses an acquisition transaction, which requires preparation and oversight that many founders and managers need to learn as they go. Although getting to an M&A exit event is by no means a guarantee, nor is it the desired path for every founder, there are several things that founders and the company management team can do to ensure that the M&A process goes smoothly.

Internal Agreement on a Sale

The first priority is forging an internal agreement among the company's management and investors to start the sale process. The following are questions that should be answered as a company undertakes an M&A process: