The Founder's Guide to Selling Your Company


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Notes

  • The best time to sell your startup si when you have many options
  • Only enter acquisition talks if:
    • You’re certain you want to sell
    • You’re likely to get a price you’ll accept
  • Reasons for strategic value:
    • Other CEO finds it interesting
    • Executive running relevant division wants to make a splash
    • They are afraid of you
  • There is no right price, only the price you can negotiate
  • Negotatiation:
    • Initiate a competitive bidding process
    • Be willing to walk away
  • You can tell if an offer is bullshit because it will not be accompanied by an expiration date and/or a promise of a term sheet delivery within a very short period of time (24–48 hours).
    • Sometimes ppl just want to distract you
  • Hire a banker
  • You should be prepared to walk away from any deal up until the point where you are watching your bank account, waiting for the wire transfer from the acquirer to hit.
  • Cripple ability to do day to day business. Don’t start process unless serious!