The Rule of 40% For a Healthy SaaS Company

The 40% rule is that your growth rate + your profit should add up to 40%. So, if you are growing at 20%, you should be generating a profit of 20%. If you are growing at 40%, you should be generating a 0% profit. If you are growing at 50%, you can lose 10%. If you are doing better than the 40% rule, that’s awesome.

(by Brad Feld)

The Social Value of Exit Plan Capital

The Social Value of Exit Plan Capital

The finance world is typically regarded contemptuously as one that profits from others misfortunes, but that is clearly not the case with Exit Plan Capital. In the essence, what makes a business successful is the value others perceive on it, throughout this essay I would like to make it clear from that perspective the reason why EPC is successful.

The Four Ps of Search Funds

The Four Ps of Search Funds

My name is Max Byer, and I am a rising junior undergraduate student at Brandeis University. Throughout this summer, I am lucky to have the opportunity to intern at Exit Plan under the sterling leadership of Principal Mike McGlade. Coming from a background in the social sciences, I delved into the foundations of search funds in order to best help push Exit Plan Capital toward acquisition.

My 10 weeks at Exit Plan Capital

My 10 weeks at Exit Plan Capital

My name is Orgil and I am a freshly minted graduate of Columbia Business School’s MBA program. During my last semester in the moody spring of New York, I had a great fortune to work alongside Mike McGlade and the Exit Plan Capital team of interns for 10 weeks in Mike’s search of purchasing a company. During this time, I have learned, applied and improved upon many skills and attributes that are essential for my professional career going forward. Here are some examples below categorized as quantitative and qualitative...

Common myths surrounding Private Equity

Common myths surrounding Private Equity

Whether you're a weary business owner or just someone interested in finance, many people have heard of PE. What you have likely heard is about large PE firms buying out an owner and systematically dismantling his/her company. However, this is usually a very very rare occurrence and has now painted a bad picture of the PE industry. Thus, most of what you have probably heard regarding PE is likely false, and is a very generalized view of a diverse industry.

3 Guiding Principles when Acquiring a Company

3 Guiding Principles when Acquiring a Company

If you’re looking for an acquisition, it’s important to dig deep into a company and understand its target customers, industry segment, and future plans. In order to be successful, entrepreneurs must be reactive rather than proactive and ensure that the exit plan in place fits what you are looking for. When thinking about your next move, use these three guidelines to lead you towards the perfect company for you to buy.

Why Do Business Owners Decide to Exit Their Business?

Why Do Business Owners Decide to Exit Their Business?

One of my mentors, Mr. Bold, was a successful business owner of a local grocery store chain in Ulan Bator, Mongolia. A miraculous example of how capitalism and entrepreneurship can transform a life of a former nomad into a business owner running multiple brick-and-mortar stores, providing jobs for hundreds of workers, and serving a sizable market in the 1.4 million people city of Ulan Bator. For Mr. Bold, business growth was imminent as foreign direct investment poured into the country following discovery of vast mineral resources in the region leading to a rapid rise in middle class income. However, one sunny day in a summer full of traditional festivals, he decided to put his business up for sale. Mr. Bold was looking to exit.