Exit Path: How to Win the Startup End Game

An exit strategy, if implemented early, is the surprising secret to ultimate startup success. Find out why--and how to develop one--in this comprehensive, practical guide from veteran Silicon Valley dealmaker Touraj Parang.

In 2008, Touraj Parang's award-winning startup, Jaxtr, had 10 million users, raised nearly $20 million from top-tier Silicon Valley investors, and seemed poised to sail straight through the Great Recession. But, by January of 2009, Jaxtr's only hope for survival was to find a buyer--sadly, it was too late for that.

In Exit Path, Touraj draws on the lessons learned from that chaotic experience and the extraordinary successes that followed once he (and the entrepreneurs he advises) made creating and executing an exit strategy a top priority. For too long entrepreneurs have been failing to establish the requisite relationships and properly prepare for the most important milestone in their life cycle: a sale to an acquirer. But in today's hyper competitive and interconnected business world, that is no longer an option. In this first-of-its-kind, comprehensive guide, you'll discover the surprising reasons few startups succeed while many fail--and you'll learn that implementing an exit strategy early will empower you to take charge of your startup's ultimate fate, maximizing its potential for success while mitigating the risks of failure.

Arranged in four sequential parts, Exit Path walks you through actionable steps to devise and execute an effective exit strategy, starting with a fresh new perspective on the critical importance of creating a viable sale option for your startup. You'll learn why creating your exit strategy is necessary well before you're contemplating an exit, regardless of the stage of your startup. You'll also discover how to create your own exit plan, how to make your plan a reality through personal and business relationships, and how to approach and negotiate with acquirers for an outcome best aligned with your values and ambitions should the need arise.

Whether you are an entrepreneur, investor, or advisor, the expert advice and insights in Exit Path will inspire you to take charge of your startup's destiny and unlock its strategic potential and options over time.

ISBN-13: 9781264703326

Media Type: Hardcover

Publisher: McGraw Hill LLC

Publication Date: 08-02-2022

Pages: 288

Product Dimensions: 5.90(w) x 9.10(h) x 1.20(d)

Touraj Parang is the Chief Operating Officer at Serve Robotics, an innovative robotic delivery startup in Silicon Valley, and an Operating Partner at Pear VC, a top-tier early-stage venture capital firm. As Vice President of Corporate and Business Development at GoDaddy, he led M&A and strategic partnerships for several business units. Parang has founded and sold several startups and has participated in evaluation, negotiation, and execution of hundreds of M&A, strategic partnership, and venture financing transactions valued at more than $5 billion.

Table of Contents

Introduction vii

Part I A New Perspective on Exit Planning

Chapter 1 The Exit Taboo 3

Chapter 2 Exit Path as Your Survival Path 13

Chapter 3 The M&A Failure Myth 17

Part II Creating Your Exit Strategy

Chapter 4 Rationale and Timing 23

Chapter 5 Step 1: Gather 27

Chapter 6 Step 2: Document 43

Chapter 7 Step 3: Iterate 55

Part III Playing the Long Game

Chapter 8 Focus on Momentum 61

Chapter 9 Build Relationships 65

Chapter 10 Build Your Exit Team 103

Chapter 11 Create Leverage 123

Chapter 12 Keep Going By Learning and Tweaking 145

Part IV Mastering the Short Game

Chapter 13 Focus on Every Shot 153

Chapter 14 Your Opening Gambit 159

Chapter 15 Transaction Phase 1: Term Sheet 185

Chapter 16 Transaction Phase 2: Agreement 221

Chapter 17 Final Thoughts 235

Acknowledgments 239

Notes 245

Index 255