MGSB22H3 Lecture Notes - Lecture 12: Initial Public Offering
Document Summary
Types of exits: capital cow, rely on cash from current operation to fund move into new venture, can maintain influence on original venture, need strong management team. Slowly sell the company to the employees: keeps critical people with the firm, gives incentives for achievement, management buyout. Senior management team puts together an offer to buy all or most of the firm. If well-groomed team, entrepreneur can be confident of future success after gone. Float all or some of the equity in public market: requires prospectus, diligence, legalities, can have positive and negative impact on employees, merger/acquisition.
