Successful startups get acquired. Zerototen prepares the entrepreneurs for an exit and runs a sale process. We get the company into its final shape before exiting. We prepare the investment case and assist in finding potential buyers. We help you negotiate and navigate the sale process. We make a deal possible and help you strike it
Most successful startups get acquired or go through an initial public offering (IPO). Few entrepreneurs decide not to exit at all, not even partially. Zerototen prepares the entrepreneurs for an exit and the options available. We assist the company into its final shape before exiting.
In case of a sale process or an IPO, Zero-to-ten helps the company get to a successful transaction and exit.
More Companies Are Choosing a Sale Over an IPO
As per WSJ, Centennial, Dollar Shave Club and others have chosen a buyer over a public listing
The case of an IPO
Zero-to-ten assists with the IPO process. It
- advises the Board of Directors on the timing of exit, the location of the public offering and the size of it
- researches and recommends the right brokers and underwriters for a transaction
- oversees the preparation for the IPO on behalf of the company
- ensures that brokers reach out to as many investors as possible
The case of a sale
Zero-to-ten helps run the sale process. It
- advises the Board of Directors on the timing of exit
- recommends actions and initiatives in the business prior to launching a process
- helps prepare the investment case and structure a potential transaction
- pre-markets the opportunity to understand the level of interest from buyers
- assists with the preparation of marketing documents
- engages with potential buyers
- manages the offers solicited and received
- helps the company in negotiation with the potential buyers
- assists with the content of the transaction documents and the shareholders agreement
- assists with the preparation of due diligence and the closing process of the transacton
Exit Routes in Private Equity Transactions
Initial public offering (“IPO”) or as sometimes referred to „flotation” or „listing” is the method whereby the company’s shares get listed on the stock market for the first time, so the investor will be able to sell its shares to the public. This is one of the most popular exit strategies used by private equity providers, due to the fact that when the proper market conditions are available, this method is likely to enable the investor to realize the highest return on its investment.
Another commonly used exit route is the trade sale in which the private equity investor sells all of its shares held in a company to a trade buyer, i.e. a third party often operating in the same industry as the company itself. This method is preferred by private equity providers mainly because it provides a complete and immediate exit from the investment. Another advantage of the trade sale is that in this case, the negotiations take place with a single buyer which allows for a quicker and more efficient process which is not subject to the regulatory restrictions applicable to IPO transactions
In the case of a secondary buyout, the company is sold by a private equity investor to another private equity firm. In other words, the particular nature of a secondary buyout lies in that private equity houses appear on both sides of the deal, while in the average transaction private equity investors would only be involved either as seller or purchaser.
Contact us at the Consulting WP office nearest to you or submit a business inquiry online.
We’ve been assisted to create a business model, an investment deck thus to define our strategy that lead us to our first pre-seed funding.
