There is an option #4 that I’ve been around a few times: build a shark that is doing the acquiring within 5 years.
Superior tech, maybe hyper efficient, hyper profitable.
Superior tech, maybe hyper efficient, hyper profitable.
It’s not so rare in some industries like oil and gas, etc where cashflow is the purpose of the work.
Add software that does what nothing has before.. and the table turns.
If that’s what you pitched them. Most businesses are private. Most rely on outside funding. Most of them never exit, and are never expected to.
From my perspective, it's effectively the PE model except the funding source is the company's own revenue rather than investment capital.