You and business have relied on the benevolence of a long-term capital investor, who in turn has received “reciprocal benefits” from you, as the entrepreneur (dividends, asset growth and so on). How ready are you if that balance, in the investor’s opinion, is now deemed inequitable and must end?
- How effective is your “early warning system” before the inevitable confrontation? (hard evidence, strong anecdotal information, feedback)
- How much power and control over your self-interests do you possess now? (economic or legal rights, ideal alternative investors, your customers, your people, IP, technology)
- How much influence do you have over the investor’s decision-making? (trusting relationships, leverage, timing, potential disengagement)
- What must you accept about the finality of the investor’s decision? (direct and indirect consequences, risks, PR)
Seriously, when is the last time that you properly considered that scenario, if ever?
