Message To Management: Don’t Wait!

Last week I got a call from a CEO of small software company. His parent was in the process of selling his company. The process of selling the business was taking longer than expected and the price was below the range the seller really wanted. He called to ask me if he thought he could lead a management buyout. After talking to him and reviewing the numbers, I told him – yes. Two days later he had a meeting with the parent and they had just accepted an offer from another buyer, and was starting due diligence. The morale of […]

Smart Money Doesn’t Ensure Success

VCs are often called ‘smart money,’ because they are more selective about investments than the average angel investor or friends/family member. However, that doesn’t mean everything they touch turns to gold. A 2009 WSJ article listed companies that raised substantial sums of money only to fail in a fairly short period of time thereafter. Equally disturbing the brief article mentions that several had raised so many rounds of financing, the original owners lost control of the business. To me, the reminder is that business owners of promising companies should always do a “gut check” on the likelihood of success on […]