People Mentioned
Vancouver Managing Partner, Vancouver
One of the questions that company founders are continually faced with is “when to sell?” In an interview with TechExit.io’s Stefan Palios, Osler’s Vancouver Managing Partner Mark Longo offered up a detailed explanation of why getting out soon isn’t always the right move and how turning to private and growth equity investments is an option to consider.
“Growth equity enables the company to get to the next level of growth so that a subsequent exit, which could be an IPO or an acquisition a number of years hence, can occur when the company’s at a further stage of growth,” says Mark, adding that bringing on extra investors can also be beneficial for early backers of the company.
“Growth equity and private equity funds play that role of injecting new cash on the balance sheet of companies, while very frequently allowing early angel investors, and VCs to take some chips off the table and gain some liquidity.”
Mark explains that being able to build a company, with the help of like-minded partners, allows the founder the breathing room to develop the kind of value that is recognized down the line.
“An injection of new cash on the balance sheet with a new financial sponsor or sponsors can ultimately lead to a much larger exit in future,” says Mark. “The key is achieving alignment between the management team seeking that ambitious goal and incoming investors who share the goal. It’s having a thesis about a certain market and finding partners who can help execute on that goal through organic and inorganic growth.”
Read the full article on the TechExit.io website.
People Mentioned
Vancouver Managing Partner, Vancouver
