Tytus Michalski, Managing Director
16 years cross-border investment experience
Founding member of PMA, US$200M exit
PMA scaled to US$3B in institutional AUM
Allison Baum, Managing Director
Launched and scaled General Assembly in Asia
Early employee at General Assembly in NY
Institutional sales and trading at Goldman Sachs
Stephen Forte, Venture Partner
Tech strategy at Telerik, US$260M exit
Experienced entrepreneur with 5 successful exits
Started AcceleratorHK, global mix of startup teams
2
Exit Context: Who?
3
Exit Context: Who?
4
Alignment
Exit Context: Who?
5
Co-founders
Exit Context: Who?
6
Employees
Exit Context: Who?
7
Investors
Exit Context: Who?
8
Customers, supply chain and partners
9
Exit Context: What?
Exit Context: What?
10
Spin-offs
Exit Context: What?
11
Asset sales
Exit Context: What?
12
Entire company
Exit Context: What?
13
Integration
Exit Context: What?
14
Ecosystem
15
Exit Context: Where?
Exit Context: Where?
16
US 2009 – 1H14 IPO: 9%
M&A: 91%
Source: EY
Exit Context: Where?
17
China 2009 – 1H14 IPO: 81%
M&A: 19%
Source: EY
Exit Context: Where?
18
Market location
Exit Context: Where?
19
Team location
Exit Context: Where?
20
Cross-border
21
Exit Context: When?
Exit Context: When?
22
Fail fast fail cheap
Exit Context: When?
23
The pivot
Exit Context: When?
24
Time vs.
capital
Exit Context: When?
25
Opportunity cost
Exit Context: When?
26
Always halfway there
27
Exit Context: How?
Exit Context: How?
28
Liquidation
Exit Context: How?
29
Partial exit
Exit Context: How?
30
Build to sell
Exit Context: How?
31
Inbound M&A
Exit Context: How?
32
IPO
33
Exit Context: Why?
Exit Context: Why?
34
Liquidity
Exit Context: Why?
35
Regulatory
Exit Context: Why?
36
Time to move on
Exit Context: Why?
37
Missionary vs.
mercenary
Exit Context: Why?
38
Intrinsic vs.
extrinsic
39
Before the Exit: The Market
40
Bull markets
Before the Exit: The Market
41
Bear markets
Before the Exit: The Market
42
Herd mentality
Before the Exit: The Market
43
Volatility
Before the Exit: The Market
44
Resilience
Before the Exit: The Market
45
Before the Exit: Distractions
46
Media
Before the Exit: Distractions
47
Conferences
Before the Exit: Distractions
48
Awards
Before the Exit: Distractions
49
Partnerships
Before the Exit: Distractions
50
Vanity metrics
Before the Exit: Distractions
51
Before the Exit: The Deal
52
Who decides?
Before the Exit: The Deal
53
Buy vs. build opportunity cost
Before the Exit: The Deal
54
Reverse due diligence
Before the Exit: The Deal
55
Cash vs. stock know your currencies
Before the Exit: The Deal
56
Earnouts just say no
Before the Exit: The Deal
57
After the Exit: The Hangover
58
Synergies?
After the Exit: The Hangover
59
Who stays?
After the Exit: The Hangover
60
Who decides?
After the Exit: The Hangover
61
Timeline
After the Exit: The Hangover
62
Handcuffs
After the Exit: The Hangover
63
After the Exit: Culture
64
Centralized vs.
decentralized
After the Exit: Culture
65
Competition vs.
co-operation
After the Exit: Culture
66
Open vs.
closed
After the Exit: Culture
67
Arts vs.
science
After the Exit: Culture
68
Formal vs.
informal
After the Exit: Culture
69
After the Exit: Keep Going
70
Building the combined entity
After the Exit: Keep Going
71
New business same area
After the Exit: Keep Going
72
New business new area
After the Exit: Keep Going
73
Support the Startup ecosystem
After the Exit: Keep Going
74
Beyond business
After the Exit: Keep Going
75
“Things do not happen. Things are made to happen.”
- John F. Kennedy
76
frescocapital.com @tytusm