Waves of consolidation can roll through a market sector with the ferociousness of the recent tsunami in Japan. So, paying attention to industry trends is important. Keep an eye on who in your sector is being acquired, and what impact that has on your options. Track who is getting funding, and which of the private equity firms are leading those investments. The smart money is looking out three to five years in anticipation of new markets emerging, and you need to be taking the same approach as you build your business. Become a student of your market. You are the reason your company exists, and therefore you are closest to it and should be the expert. By carefully monitoring and analyzing market trends, you can influence how your company is perceived and spend your scarce capital on activities that build the greatest value as you position yourself for an M&A exit.