Now You See Me: The Intricacies of Entrepreneurial Exit Strategies

Authors: Dominic Stanz, Richard Chan

SUNY Campus: Stony Brook University

Presentation Type: Poster

Location: Old Union Hall

Presentation #: 60

Timeslot: Session C 1:45-2:45 PM

Abstract: Firms in the Private Equity (PE) and Venture Capital (VC) sectors rely on statistical analyses to identify the optimal period to make a myriad of exits from their markets. As is shown through numerous examples of financial transactions in the past, business analysts primarily look towards industry-specific market growth, liquidity options, and public interest as economic indicators from which to base their exit strategies off of. The timing and execution of these tactical transactions relies on the transparency and liquidity of financial markets in order to produce the greatest returns to investors and highest likelihood of enduring success for the assets that are transferred. By tracking entrepreneurial businesses and their turnover rates across a several year period, we can create a dataset that can be utilized to forecast growth in an infancy stage, with the assistance of financial consulting and artificial intelligence blockchain technologies. Through implementing an operatic framework that fluctuates within a given bound of growth and bust, one can quantify the monetary impact of non-tangible factors that influence investors in the entrepreneurial stages of growing a business. Using empirical analysis to examine case studies and primary research on exit strategies, it can be seen that the strength of an exit method depends greatly on the transference of funds into their next asset. This paper discusses the decision-making processes and wide-ranging economic implications on primary and subsidiary markets impacted by corporate exit strategies.