Nfluence Partners’ Post

When you think of #business ownership outside of the VC-funded startup world, you probably think of one person who owns 100% of a business. That's not necessarily the case in #eta (Entrepreneurship Through Acquisition). How you go about structuring a deal when acquiring a business has huge implications for your ability to grow the business and accumulate #wealth. This ETA world is broadly split into two camps: - Self-funded searchers who use leverage to buy a business and usually own 90%+. - Search-fund searchers who work with an investment group to acquire a larger business and often own as little as 20% of the acquired business. The most recent post goes over my game plan for choosing a size of business to acquire and sources of funds. https://lnkd.in/g2qvH7Wv

Going Public: Dream of an IPO? A C Corp is your ticket. 🚀 Transitioning from LLC to C Corp for Startups Is your startup evolving? Considering a switch from LLC to C Corp? It’s a strategic move that could pave the way for significant growth and investment opportunities. Why Make the Switch? Attracting Investors: C Corps are investor favorites. They offer structured scalability and ease in transferring shares. Going Public: Dream of an IPO? A C Corp is your ticket. Employee Compensation: Stock options? C Corps makes it easier to reward your team with equity. Startup Accelerators: Many prefer C Corps for their equity and convertible note structures. #StartupGrowth #BusinessTransformation #Entrepreneurship #InvestmentStrategy #CorporateStructure #VentureCapital #BusinessLaw #Innovation #StartupLife How to Transition: Statutory Conversion: A direct switch, transferring assets and liabilities from LLC to C Corp. Statutory Merger: Create a new C Corp, then merge your LLC into it. Non-Statutory Conversion: A complex process, best used as a last resort. The Process: Develop a conversion plan. Gain unanimous LLC member consent. File with your Secretary of State. 📈 Embrace the Advantages: Investor Appeal: C Corps is a magnet for serious investors. Employee Incentives: Use stock options to attract top talent. 🎯 Be Mindful of the Challenges: Tax Implications: Understand the tax differences between LLC and C Corp. Complexity: Seek legal and financial advice to navigate the process smoothly. 🌟 Ready to Scale Up? If you're considering this transition, remember, timing is key. Start as a C Corp, or make the change early to avoid complexities. Are you planning this transition or have already done it? Share your insights below! Let’s learn together!

The Good… the Bad…. and the Intermediate: Leavers explained   In our latest Fundamentals guide, Hannah Cordwell explores leaver provisions – breaking down the various categories of leaver and their consequences and typical negotiation points when a founder takes on new investment. https://lnkd.in/ea5RUykR   #venture #founder #startup

Today, we are thrilled to announce Jeff Duke as the new CEO of Vibanc. This marks not just a significant step forward for our company but a personal dream come true. Jeff, an old friend and seasoned entrepreneur, joins us to revolutionize deal sourcing for M&A, Private Equity, and Venture Capital. In the world of high-stakes business, the pain of sourcing quality M&A or Venture deals is a constant headache. Companies looking to grow face the daunting challenge of finding the right acquisition targets—often a tedious and frustrating process. Traditional methods can leave you sifting through a sea of unlisted prospects, missing out on the best deals simply because they’re hard to find. That’s where Vibanc steps in, transforming the game with our AI-powered approach. Think of us as your ultimate business development rep, but instead of finding customers, we help you find hidden gems to buy—companies ripe for acquisition. With Vibanc, you get a high volume of quality prospects, ensuring you don’t just grow, but thrive with the best possible deals. Jeff brings a wealth of experience to Vibanc. With a robust background as an entrepreneur and operator, he has navigated the complex landscapes of business development and strategic growth. His expertise and vision align perfectly with our mission to make deal sourcing frictionless and efficient. Under Jeff’s leadership, Vibanc is poised to push the boundaries of what’s possible in the industry. We’re excited about this new chapter and the innovative solutions we will bring to our clients. Together, we’re set to redefine the future of deal sourcing. Read more about this exciting development and Jeff’s vision for Vibanc here. https://lnkd.in/gRaSrAxC

Everyone knows 2023 was a tough year for startup valuations, but just how tough? A new report from PitchBook has more detail. Median valuations fell to three and five-year lows, but pre-seed and seed valuations remained buoyant. IPOs continued to underperform, with average valuations reaching their lowest level in a decade. The report found a brighter outlook in M&A activities, with the average acquisition value increasing on an annual basis. Need some help figuring out what this means for your company? Get in touch with the team at G-Squared Partners, LLC today and start building for a better financial future: https://hubs.ly/Q02mDvhN0 #gsquared #gsquaredpartners #gsquaredCFO #chieffinancialofficer #cfo #accounting #fractionalcfo #ceo #virtualcfo #business #entrepreneur #parttimecfo #smallbusiness #chiefexecutiveofficer #finance

For any company contemplating the complex journey of an IPO, the first task is to assemble the best team for the job. More on this by Mike Whitmire, CEO of FloQast. #Entrepreneurship #Strategy #Finance

Don't be afraid to talk about exit strategies. DSB Management Consultants is here to help. Many entrepreneurs tend to prioritize exit planning only when their startup is in dire need of a sale or when they receive interest from potential acquirers. Consequently, this approach can lead to missed strategic opportunities or result in less-than-ideal outcomes. #DSBManagementConsultants #ExitStrategy https://lnkd.in/gQTy_Zjx

Check out the latest interview by Vancouver Tech Journal featuring Jon Conlin, Fasken Partner and one of our VEF Board of Directors. Dive into valuable M&A insights for startups and explore predictions for the tech landscape in 2025. Read the full article here: https://lnkd.in/gS8yrjDe #TechNews #Startups #MergersAndAcquisitions

“We are founder-friendly and are with you till the end of the journey.” Has many hidden truths. Can you tell me what are those? The truth is that VCs have to be founder-friendly to ensure they get exits as they have to wait till the end of the journey to secure an exit. An ideal case for an investor is where they invest money in a company, wait for it to grow and reap 100x+ returns in 7-8 years. So what are the hidden truths? 1.      All investors invest money to take exits, which has to happen in a fixed time frame. As a founder do you know what this is for your investor? 2.      Investors like to cover most of the downsides, which is why SHAs have many protection clauses. All of this is to ensure that the money is safe. 3.      ‘Exits’ are not discussed very often in the startup ecosystem, but it is the crux of this ecosystem as no money can stay invested forever. 4.      While exits can happen in multiple ways and across multiple stages, typically all investors would like to wait for the end to maximise returns. Do you have an alignment with your investor and understand their exit expectations? I am sure by now you all know of an IPO as the defined exit route for all investors and typically even founders. But, this is a far-off case with multiple variables affecting the outcome. Let’s get to know the other ways of delivering exits – 1.      Acquisition (not acquihire) – Here a company acquires the business of your company while typically giving cash to all shareholders or a mix of cash + shares of the acquiring entity. This is one of the foremost ways to make returns e.g. – CRED acquiring Happay 2.      Secondary Sale – Herein an early investor can sell to a later stage investor (seed investor selling shares to Series E investors). This typically happens at a discount and is the best route of exit for investors who hold <3% of the company. For larger investors, this will not make sense. Would you happen to know why (comment below)? 3.   A 3rd party buyer – Here the investor is selling their shares to some other investor at a pre-determined price. No money is received by the company and this transaction happens between the investors. This is fairly rare scenario. But is a possible partial exit scenario. 4.      Promoter buyback – This is rare and is typically when the promoter (founder) of the company can buy the investor shares back. Happens mainly from the profits that the firm is generating. End quote “If you are raising money from someone, understand their exit expectations, timelines and discuss the possible modes of delivering that exit. Investors always want an exit” #BaniyaBuddhi #MadadkaroDuanahi #BuildingRight

For those seeking investors and for those making investments - a great thread by Nicole DeTommaso with important advice: Choose your key points but not all of them are available. Read 👇👇👇 #vc #investing #founders #startups