The Tech Entrepreneur’s Financial Playbook
Winning Plays for Forming, Financing & Operating Tech Companies
by
Book Cover & Preview Text
The culmination of any technology company’s tenure is an exit transaction whereby the company’s ownership interests become liquid (a.k.a. a liquidity event). Typically, a liquidity event happens when the company’s assets or stock is acquired by a third party, either a strategic acquirer or a financial buyer. Rarer are liquidity events through initial public offering (IPO) of the company’s stock on a public stock exchange. An acquisition typically starts with business discussions between the company’s executive management team and the business managers at a potential strategic acquirer or financial buyer. Eventually, if the discussions proceed far enough, the parties may agree in writing on the general business terms of an acquisition. This written but non-binding agreement is called a Term Sheet or Letter of Intent. The purpose is to agree on high-level items which allows the buyer then to commence a detailed investigation of the business, called due diligence. Due diligence typically involves a detailed and thorough investigation of all aspects of the company’s business, including
Select Format
Book Details
About the Book
When an entrepreneur starts a business, his or her focus is on developing a product or service to sell to customers, and then on landing the initial customers. Off the radar for most entrepreneurs are mundane tasks relating to accounting, finance, governance and human resources. These tasks are often ignored by small companies that don’t know what to do and are confused by complex requirements from various jurisdictions. Yet these roles are critical to every company large and small. Without back office tasks being performed regularly and accurately, a company will be swamped during due diligence from an investor or acquirer. Or a surprise state tax audit could turn ugly. Also, management won’t understand how the company is performing or how much capital is available to reinvest in growth. But these responsibilities can be addressed simply and at a low cost in any small technology business. Built on three decades of entrepreneurship and honed by experience working with dozens of entrepreneurs, this text guides entrepreneurs on best practices for the necessary back office functions of a technology business. This text includes steps to effectively implement simple procedures so that finance and administration doesn’t impede the company’s growth or valuation.
About the Author
Evan Rogoff is a Certified Public Accountant (CPA) and a former Certified Turnaround Professional (CTP) with nearly 25 years of experience in corporate finance and entrepreneurship including nearly 20 years working with rapidly-growing early-stage technology companies. He has started 5 businesses, including Rogoff Financial Services LLC to advise technology entrepreneurs on business, financial and operational strategy by serving as a fractional chief financial officer. He has helped raise over $150 million of equity and debt capital for technology companies and has completed 20 M&A transactions including liquidity events. His clients have been honored in respected industry programs including the Deloitte & Touche Fast 500, Inc. 5000, Pacesetters and Best Places to Work. Evan graduated with high distinction from the Ross School of Business at the University of Michigan. He is an active participant in the technology community and has been a speaker and presenter to various industry groups. He served as President and a member of the Board of Trustees for the Technology Executives Roundtable and is a member of the American Institute of Certified Public Accountants.