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Sell Your Startup with a Mergers and Acquisitions Advisor

The Startup Magazine

In many cases, your advisor will identify key employees and create a business plan to help you find a buyer and negotiate the best price possible. However, you should be aware that some potential buyers may back out of the deal during due diligence. Identifying key employees. Source: Pixabay. Creating a business plan.

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

YoungUpstarts

The employees depend on their expertise and training. 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

And wants to structure a huge payout for the employees that will remain. I know many rank-and-file employees. For the 200 new employees they’ll get through acquihires do they unleash 2,000 unhappy existing employees? And reward your existing top 10% of employees handsomely. Does Yahoo!

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5 Things To Consider Before Selling To A Private Equity Firm

YoungUpstarts

But if you care about your employees or are concerned about legacy, dive deeper into the potential buyers. By the same token, using a competent accountant for tax advice can help you maximize the deal structure to limit your tax exposure and maximize the cash potential in the sale. Consider Sticking Around.

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Knowing When It’s Time To Sell Your Startup

YoungUpstarts

The deal closed only four months later in August of 2012. They only had 13 employees! Negotiating a different deal structure could have prevented the price from dropping. Despite the success, there was one valuable lesson to be learned here. Unique social networking product. Rapidly growing market. Unprofitable.

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Acquihires 101: Tips for Founders

Scott Edward Walker

How is the Deal Structured? The deal is typically structured as an asset purchase (as opposed to a stock purchase or merger) — though the acquirer often does not actually want the startup’s IP and/or other assets. The appeal from the startup’s perspective is a “soft landing.”.

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10 things I wish I knew when I sold my businesses

Jeff Hilimire

It’s easy to get caught up in the dollar signs and deal structure and overlook this important step in the process. Be as open as you can when communicating with your employees. There is only so much you can share with your employees when working on an acquisition of your business. This is a tricky one.