Many entrepreneurs focus their energies on starting and running their businesses, and may overlook the potential drawbacks of their exit strategies, or ways investors will get their money back.
Acquisitions and initial public offerings can bring unanticipated challenges. For instance, Etsy Inc.’s stock has fallen nearly 50% since its market debut in April, in part because of a wider-than-expected quarterly loss last month.
Alibaba Group Holding Ltd. founder Jack Ma recently said he felt regret about taking his e-commerce firm public, because of the stresses that followed its IPO. “If I had another life, I’d keep my company private,” Mr. Ma said at an Economic Club of New York luncheon last week.