Author Archives: Dave Berkus

Entrepreneurs do not easily retire.

Posted on September 17, 2020 by Dave Berkus

So, you’ve successfully sold your business and have received enough money from the sale to become financially independent, no longer having to work for a living.   That is a comfortable place to be, and it is one experienced by more … Continue reading →

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Shareholders and founders: The muted thrill of the deal closing.

Posted on September 10, 2020 by Dave Berkus

Now you have worked for months to get this deal to the closing, anticipating the wire transfers to the shareholders that will come any minute.   This could change your lifestyle and give you that much needed pause in your life … Continue reading →

Posted in General, The liquidity event and beyond | 4 Comments

What use is an investment banker?

Posted on September 3, 2020 by Dave Berkus

Many CEOs have asked me if I felt an investment banker adds value if the buyer has already been identified. How investment bankers behave Investment bankers sometimes slow the process by requiring a cloud-based “data room” and  “deal book” to … Continue reading →

Posted in The liquidity event and beyond | 4 Comments

What’s a “data room” and how do you use it?

Posted on August 27, 2020 by Dave Berkus

First, what’s a “deal book?” Maybe you have not heard the term, “deal book.”  That’s a comprehensive piece on a company for use by a buyer in determining fit.   A “deal room” is a cloud-based or physical space dedicated to … Continue reading →

Posted in The liquidity event and beyond | 4 Comments

A million things can kill the deal.

Posted on August 20, 2020 by Dave Berkus

So, you’ve found the buyer, received a letter of interest, signed it, and exclusively tied your company up for a period to complete the deal.  Everyone on the board is anxious to close this.  You’ve committed time to do whatever … Continue reading →

Posted in The liquidity event and beyond | 2 Comments

Decoding and learning from a business failure

Posted on August 13, 2020 by Dave Berkus

Have you experienced a business failure? Are you currently at risk due to events you cannot control? Not all companies are successful. Your end game could be a failure of the business.  In fact, many angel investors or venture capitalists … Continue reading →

Posted in Hedging against downturns, Protecting the business | Leave a comment

What’s your personal-business end game?

Posted on August 6, 2020 by Dave Berkus

Remembering our original vision When we start a business, we are optimistic that we will succeed and dream of riches to follow when the company is sold or even getting all the way to an IPO.   Some of us build … Continue reading →

Posted in General, The liquidity event and beyond | 1 Comment

What would happen to the business if you die, leave or are disabled?

Posted on July 30, 2020 by Dave Berkus

Yes, we’re invincible when young When we are young and early in our business lives, we feel infallible to the degree that we do not think of what might happen if we die while in office or decide to leave … Continue reading →

Posted in Depending upon others, Protecting the business | 1 Comment

Selling your company for less than expected?

Posted on July 23, 2020 by Dave Berkus

How about outside investors? Sometimes the end game or sale of the company is not a happy event.  Especially when outside investors, venture capitalists, or angels, have put in substantial money and the sales price is less than the value … Continue reading →

Posted in The liquidity event and beyond | 1 Comment

An economics lesson for growing companies

Posted on July 16, 2020 by Dave Berkus

Catching up from past insights Growing companies usually require more working capital during their periods of rapid growth.  In past insights we have calculated the amount of additional capital needed for a business as it grows, and the additional capital … Continue reading →

Posted in Depending upon others, Growth!, Protecting the business, Raising money | 1 Comment