Tag Archives for Cambridge Evening News

Selling at the top.

Business Plan in a Day bookImage by Raymond Yee via FlickrLawrence Bailey of Price Bailey in Cambridge has some good comments to make about selling companies.  There is a feature in a Cambridge Evening News supplement sponsored by his firm.  He talks about four different scenarios but the one I like talks about the sale of an Internet based insurance intermediary in January of this year, 2008.

At the time, the entrepreneur felt that the time was not right and the price was too low.  Nearly twelve months on, the same person reckons the company would be worth on third of the price.  Most companies plod along working away and not keeping any eye on the value of their business.  It is understandable as it is hard making a crust.  But every company should have a business plan resource which makes them track the valuation of their company and also makes sure that it is always optimised for sale.

Twenty years ago, one entrepreneur summed it up with the phrase “We could work for another ten years and not be as well off!”.  So keep one eye on the inside and the other on the outside.  But gosh, you have to be clever to close before a market stalls – and very brave! And to have Price Bailey holding your hand!

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Some of Jenny’s companies in Cambridge

The Kaetsu Centre provides prestigious new con...Image via Wikipedia Each week, Jenny Chapman of the Cambridge Evening News puts together her twelve page Business & Finance section.  This week, the centre page features Mike Lynch, founder of Autonomy which is now back in the FT 100- how I wish I had kept my shares in Autonomy after the crash in the early ’00s.  Business is booming but we never find out more about the “immaculate conception” of Autonomy and how it went from start-up to sales so quickly in 1996.  Where did the product come from and who paid?  Lynch loves Cambridge and it is just surprising that he did not get to New Hall before the Edwards’ – Murray Lynch College has a good sound about it.Jenny Chapman also features Qasara which came out of TTP Comms and is develping “4G” technology which will come to the market in a couple of years. Qasara is expected to move into profit by 2011.  With a team of nearly twenty highly paid experts it is not clear from the article who is fronting the costs.  When Qasara was set up “we got talking to one of TTPComm’s old customers and were able to get funding”.  What does this mean?  A development contract or equity funding?  If the latter, Qasara will be dependent on the investor to keep funding the company as it is not a normal pattern for a VC to come in.  Has Michael Barkway, CEO, and his team thought through the Equity Fingerpint as part of their business plan? How much of Qasara do they own and do they have options?  What are their equity plans?

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