Exit Strategy/ Liquidity Event
Management understands that the investor's goal is to liquefy their investment at a substantial profit when the company's value has been maximized through astute management and results. We anticipate three potential exit strategies, which could take place:
1. Private Marketplace
A listing of the company on a private marketplace could include StartEngine Secondary, SharesPost or Nasdaq private market, etc. The private marketplaces provide semi-liquidity to the shareholders of private companies. Billions of dollars of the shares of companies like Uber, AirBNB, Facebook, LinkedIn and Snap have traded or continue to trade on a private company market place prior their IPOs.
2. Initial Public Offering
This event could occur once our products are widely known and sales are high. This strategy has the advantage of retaining existing management and product development teams, to continue producing new related products and generating dividends for the original investor(s) and founders. It has the disadvantage of making our company’s financial reports available to competitors, and of putting equity valuation at the whim of the stock market, rather than based on solid assets or sales-based calculations.
Based on our sales performance and/or growth of the user base, we could be acquired by a larger media company such as Yahoo, Facebook or perhaps a gaming publisher. Media companies such as Publishers Clearing House and Valpak (Cox Media) could possibly be an acquirer. Disadvantages to this approach are the necessity to focus largely on making our company attractive to a single market segment, with the final sale in mind.