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Early Exits - What are the Economics?

Published Thursday, January 28, 2010
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Basil Peters' book Early Exits explores the premise that entrepreneurs and angel investors would make more money, and have more fun, if they built companies around a strategy of early exits. 

In "Early Exits" Peters shows that most M&A transactions are under $30 million.  He believs that entrepreneurs don't need to build companies to be profitable before they can execute very good M&A exits.

The fundamental driver behind this trend is that big companies have learned that M&A is the best way for them to grow.  And no one takes this idea more seriously than Google.  A quote from one of Google's top M&A people: "90% plus of our transactions are small transactions.  So that would be less than 20 people, less than $20 million and that is truly the sweet spot". 

To read more: See Peters' blog

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