Saturday, March 12, 2011

And it goes on and on and on...!!!



The human life cycle in some ways can be compared to that of a corporation. Here is my version of how this happens.

0-9 Months: Seed Stage Financing
As the name says, this is when the seed is planted. This period requires close monitoring since business is most susceptible to failure at this stage.

9 Months - 2 Years: Angel Financing
Mommy is the angel and you're the apple of the daddy's eye.


2 - 4 Years: Early Stage/ Venture Capital

So now you've been through the initial tests and you've passed. You've learnt how to walk and maybe talk. Now let's see if product feasibility can be established.


4 - 15 Years - Expansion
The world is your oyster. Go ahead, explore, innovate, catch the rainbow.

15 - 21 Years - Buyout
"Maybe I should ask her out". If you thought something like this, well you just entered the exotic field of M&A. And if on the other hand someone asked you out, you just received an acquisition bid.

This is actually a pretty complex stage. Some choose to merge, some either get acquired or acquire someone else and some still carry on as independent corporations.

21 - 30+ - IPO
This is when the original founders (parents) sell their stake to a professional management (your spouse)and take in the cash. Now you are liable for public reporting and distributing dividends (producing children).

And finally, when the corporation reaches a mature stage, its time to spin-off a new division and start the whole cycle again.

Please note, this pattern is not typical and you will find many exceptions, however, this is the norm and not the exception.

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