The MentorEd Show

Minisode 26: Understanding Investor Liquidity


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"You have an expectation for liquidity. At some point in time in the future, you expect to have a way of selling your interest for an impactful return... How do you get liquidity? The company can buy you out... You could sell your shares to another interested investor... or the business is big enough... to go public." - Ed Roberto.In this episode, Ed and Adel talk about:The three ways a growing business can raise capital are profits, debt, and equity.What an outside investor expects when they take an equity stake in a private company.The different paths to "liquidity" for your investors, going beyond the typical IPO or acquisition exit.A real-world example of how early investors can get a payday through a secondary sale to a larger fund.The proper role of an institutional investor: providing positive influence, not negative control.Chapters / Show Notes:00:00 - Introduction00:30 - How a Family Business Should Think About Capital01:20 - The Challenge of Selling Equity to an Outsider02:20 - Other Than Money, What Does an Investor Bring?03:30 - From "Exit" to "Liquidity": What Investors Want04:50 - 3 Paths to Liquidity: Buyouts, Secondary Sales, and IPOs05:50 - Case Study: How Early Investors Got a 2x Payday07:20 - The Role of an Investor: Positive Influence vs. Negative ControlListen, Watch & Follow:🎧 Listen on Spotify & other platforms: [Link to Your Spotify]🔔 Watch on YouTube & Subscribe: [Link to Your YouTube Channel]Instagram - https://www.instagram.com/mentor.ed.podcast/LinkedIn - https://www.linkedin.com/showcase/mentored-show/Learn More:SAUS here: https://sausleadership.com/Ed Roberto's Profile: https://www.a8innovation.com/our-team/ed-robertoAdel Hameed's Profile: https://www.a8innovation.com/our-team/adel-hameedThe MentorEd Show is an A8 strategy Original Podcast.
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The MentorEd ShowBy Edward Roberto and Adel Hameed