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5 Risks Of Buying A Business And Profiting Off The Opportunities They Create

YoungUpstarts

They manage all the customer relationships. The opportunity: Use this as a negotiating point when bargaining for the deal. If the business IS the business owner, then that person needs to be part of the deal. Structure the buy-out to include an employment contract or consulting agreement, as well as an earn-out.

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The Corrosive Downside of Acquihires

Both Sides of the Table

The Aqui-hire Business. Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. And they might give a premium if the team has been around a longer period of time, has built some hard-to-build proprietary technology or has some customer traction. Go do a startup.

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5 Things To Consider Before Selling To A Private Equity Firm

YoungUpstarts

The investment banker or advisor you hire will help you market your company and find potential buyers. The CIM is a document that outlines the company being sold, its history, products and services, customers, financial performance, management team, and growth strategies. Like attorneys, you don’t want to skimp on tax advice either!

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The Pre-Seed FAQ

K9 Ventures

Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. 6M-$15M used to scale customer acquisition and revenue). Q: How are most Pre-Seed deals structured? Series A is the new Series B. (~6M-$15M

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The Dos And Don’ts Of Selling Your Business

Duct Tape Marketing

Just like every business thinks about their customers and what their customer wants, when you wanna sell your business, you are basically entering the same kind of world, but instead of your product or service, it's your business. Let's talk about some of the deal structures you've seen. 01:38): Yeah, sure. 09:23): Sure.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

All Earnest investments are made using the Shared Earnings Agreement (SEAL) – a custom salary/profit share structure, aligned with how most bootstrapped founders are compensated. The fund specializes in “micro-SAAS,” often investing to help the founder go from part-time to full-time on their business or make a key hire.

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Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. Help identify key technologist and product hires to transition in-house (week 13 onward, however this can take 1 year).