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Creating Multiple Liquidity Events with Progressive-Exit

Tech company founders and executive teams have several advantages in creating multiple cash liquidity events with a progressive exit transaction with a private equity firm. Here are some potential benefits:


  1. Diversification of Risk: Creating multiple cash liquidity events allows founders and executive teams to diversify risk and reduce exposure. This can be particularly important for those with a large percentage of their wealth tied up in the company.


  2. Opportunity for Growth: By partnering with a private equity firm, founders and executive teams can access additional capital and resources to help fuel the company's organic and buy-build growth. This can help them expand more quickly and take advantage of new opportunities that may arise.


  3. Operational Support: Private equity firms often have extensive experience and expertise in operating businesses and can provide valuable support and guidance to founders and executive teams. This can help them to make better decisions and optimise their operations, leading to improved performance.


  4. Increased Valuation: By executing progressive exit transactions with private equity firms, founders and executive teams can potentially increase the company's valuation multiple. This can be achieved by optimising the company's growth operations, improving its financial performance, and enhancing its overall strategic positioning, giving all reason to be optimistic about the future.


  5. Partial Exit: By creating multiple cash liquidity events, founders and executive teams can take a partial progressive exit, allowing them to realise some of the value they have created in the company while retaining an ownership stake. This can give them a greater sense of financial security and peace of mind, knowing that they have options for their future.


Overall, creating multiple cash liquidity events with an intelligent progressive-exit transaction with a private equity firm can provide tech company founders and executive teams with a range of benefits, including risk diversification, access to additional capital and resources, acquisition support, operational expertise, increased valuation, and the ability to take a partial exit.

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