What’s the best way to navigate exit options?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Staying Independent – AVC

Another possibility is leveraged recaps and possibly dividends. If you build a business with excellent cash flow, there will be cash that can be used to pay out dividends or used to service and pay down debt. Dividends are not tax efficient under US tax law. The Company will pay income taxes on its earnings and then the investors will pay taxes again on the dividends. That is why leveraged recaps are more attractive in the US. Instead of paying d… (read more)