What Kind of Investors to Select Depending on Your Exit Plan?

This article is written by Nardine B. M’barek, a Contributor Author at Startup Turkey.

Kaushal Chokshi is a global named investor, entrepreneur, and the founder of Scaale Group. Scaale as Growth Consultants for smart capital, international sales, and global M & A services to growth companies and large corporates. They believe that they can leverage their capability for developing new business models for growth and build value for exit or shareholder’s value or stakeholder’s value. Mr. Chokshi was present with us during Startup Turkey 2016 and gave a speech about how to build value to exit.

Preparing for an exit as soon as you start thinking about your company, and actually establishing it is very important for you as an entrepreneur. Some leave it for the end, when they start thinking about how to exit, that is when they start preparing the plan. However, things should not be done that way.

An exit should be thought of beforehand, it does not mean that you need to think about it only, forgetting about establishing strong fundamentals for your company. But, you need to keep in mind that this is also an important aspect of your career as an entrepreneur, and that if you do not take it into consideration from the start, you might end up stuck, and in need of an emergency plan to save you. 

When preparing for your exit, you need to select your investors according to the exit plan, which includes benchmarks, that you are going to choose. Those investors need to understand how your plan is meant to work, and how they can help you execute it since an exit needs investors to be realized.

If you are going to choose the strategic exit, then you are going to need investors who are very smart, have got an important amount of experience in the field, and who can and are willing to help you through taking you to the stage whether in terms of sales and marketing, or in terms of introducing you to the right companies later on. 

Selecting your investors according to your exit plan is very crucial, you need to have investors who are going to benefit you on many levels when you start executing your exit plans. Your investors need to be able to share with you their network of other investors and connections, those who are going to represent potential acquirers. Investors also need to have the same objective as you have; if you want to execute your exit plan, but your investor does not want to do so, then it will be a huge problem for both you and your company. 

It is preferable to opt for global investors. Global investors usually have a very rich global network, they might bring you connections that are very useful. Also, global investors have got the ability to introduce you to markets you did not think about previously, and of which you are going to benefit immensely.

When you are going to exit, global investors will be very helpful as well; they will bring you strategic acquirers from those countries which you did not think about either. The thing is that you need to consider global strategic acquirers for maximum arbitrage. You also need to involve your investors to take you through all the necessary benchmarks.

Your exit plan is as crucial and important as your company is. You need to prepare your plan with all its details when you start preparing for your company’s future. It is something that you need to keep in mind in order to succeed. 

─ August 11, 2019