The Startup Magazine

AUGUST 15, 2022

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.

Merger 130

Merger Acquisition Due Diligence Valuation 130

YoungUpstarts

MAY 17, 2019

Why start from scratch when you can get a great deal on what someone else started? But every year thousands of entrepreneurs become millionaires by buying and growing businesses without the startup headaches of venture capitalists, zero revenue, and no business processes. The employees depend on their expertise and training.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

Both Sides of the Table

MAY 13, 2013

And a few teams of super talented, educated and bright entrepreneurs make a few mill. 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?

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

Most entrepreneurs would love to be in a position to have to decide! You’re skipping a step — trying to decide if the deal is even plausible — but how can you decide that if all you’re doing is thinking about the other side? Do you prefer Deal B? Are you willing to sell your baby? At what price?

Sales 235

Sales Term Sheet Stock Deal Structure 235

YoungUpstarts

NOVEMBER 13, 2012

However, for many successful entrepreneurs, weighing all of the personal and financial issues that go into this decision can be gut-wrenching. Each one can provide valuable lessons to the entrepreneur. The deal closed only four months later in August of 2012. They only had 13 employees! Here are a few to consider.

IPO 162

IPO Exit Strategy San Francisco Startup 162

grasshopperherder.com

SEPTEMBER 24, 2011

Some have been as co-founder, most have been as a consultant with the possibility of becoming an paid employee, “as soon as we close our funding round.” Valuations. I was approached with one sweat equity offer that placed the valuation of the company at >$5 million pre-money and before even a seed round of funding.

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41