Portfolio Exits

Want to buy a business?

 

Exiting a portfolio investment in a timely and accurate fashion can be a difficult and lengthy affair. Every exit proposal must be diligently evaluated and passed through a structured appraisal process before final decisions are made. Typically, portfolio investors pursue opportunities in early-stage companies with an investment horizon of five to seven years. The identification of verifiable exit strategy is one of the essential parts of any investment decision. Early-stage companies are not acquired by pure coincidence. Successful "serial entrepreneurs" plan and execute strategies to achieve the desired exit goals in the future. Other entrepreneurs want to achieve the same result too, though not sure how to go about it.

 

V4G uses its proprietary Reverse Liquidity Planning (RLP) methodology, a tried and tested process that's driven by market intelligence, strategic research, extensive networking, business planning and operational execution, guaranteeing a smooth and hassle-free realisation of your exit strategy. Businesses are bought, not sold and our experience says acquirers who buy companies are often interested in a particular product, a market(place) or its (development) team. At the pre-investment due-diligence stage, RLP identifies key value drivers and reverse-engineer the possible exit strategies.
 

Challenges

  • Planning and validating the exit strategies before investments are made in a portfolio
  • Projecting capital requirements correctly and ensuring investment protection through rigorous risk mitigation processes before investing
  • Successful execution of a well-defined exit strategy either through trade sales, public listing or innovative liquidity solution

Solutions

  • Extensive groundwork to identify potential exit opportunities. Our Reverse Liquidity Planning (RLP) methodology closely aligns the investment objectives of portfolio companies with the vision and strategy of the target suitor
  • Continuous monitoring of performance till exit strategy is executed, RLP methodology ensures strict discipline is enforced in portfolio companies
  • Once investment is made in a portfolio company, RLP ensures that it is able to launch a differentiable product or a go to market approach swiftly proving its unique value proposition in the target market
  • Implementation of RLP makes sure the company is capital efficient with a lower capital burn rate
  • Portfolio companies are favourably positioned for an early take-over by bigger players or competitors
  • Companies are valuable enough to attract expansion capital at a later stage if it's found expansion will create more value than exiting the business

Benefits

 

  • We review every proposal for higher reward-to-risk ratio and viable exit strategies. When an early-stage acquisition is successful, the acquiring company often gains access to cutting-edge technologies and the team that developed it, before the next rounds of venture capital investments takes place. The early stage company also benefits since product development life cycle reduces significantly as it gets access to the acquiring company's R&D, IT, marketing and support infrastructure. Both the founders and early stage investors are able to leverage this combination to realise superior returns on their investments at a relatively short span of time.

  • The Reverse Liquidity Planning methodology drives our investment decisions and actions, and acts as the benchmark at all times. All our future investment decisions, including next stage funding depends on the RLP process, and the present market opportunities.

 

Sign up as a Portfolio Exit and learn more about the potential investors who are interested in buying-out your investments;