      Unknown · 2024-12-30
      · 521d
    

CEO Decision Framework: When to Sell a High-Performing Company

Dave Kellogg explores the paradox CEOs face when recognizing it's time to sell a financially healthy company threatened by emerging industry headwinds. The article identifies four major obstacles to this conversation: lack of performance data confirming problems, difficulty interpreting trends vs. metrics, potential misinterpretation as self-interest, and misaligned VC incentive structures. Kellogg provides strategic recommendations for navigating this difficult board-level discussion.

3 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Typical PE Fund Holding Period

4-6years

typical range

Private equity fund investment duration

Typical PE Fund Return Target Multiple

3-5xmultiple

median

Private equity fund exit returns

VC Fund IRR Impact from Removing Top Performers

35 to 12%

illustrative example

Fund-level IRR reduction scenario