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 131

Merger Acquisition Due Diligence Valuation 131

Both Sides of the Table

MAY 13, 2013

If you give $2 million for 20% of a company ($8 million pre + $2 million investment = $10 million post-money valuation) that has no product and no customers and it turns around 3 months later and sells for $5 million it would hardly be fair for investor to get $1 million back (20% of the proceeds). I know many rank-and-file employees.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

YoungUpstarts

MAY 9, 2019

The CIM is a document that outlines the company being sold, its history, products and services, customers, financial performance, management team, and growth strategies. But if you care about your employees or are concerned about legacy, dive deeper into the potential buyers. Consider Sticking Around.

Private Equity 113

Private Equity Equity Investment Bankers Government 113

YoungUpstarts

NOVEMBER 13, 2012

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. Unique social networking product. Despite the success, there was one valuable lesson to be learned here. Rapidly growing market. Unprofitable.

IPO 162

IPO Exit Strategy San Francisco Startup 162

Scott Edward Walker

DECEMBER 13, 2018

An acquihire is essentially the acquisition of a startup for its talent/team (rather than for its products or services). How is the Deal Structured? As discussed below, this structure exposes the founders to potential legal liability resulting from their breach of fiduciary duties as directors and/or executive officers.

Founder 45

Founder Merger IP Liquidation Preference 45

Jeff Hilimire

MARCH 4, 2014

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.

Private Equity 61

Private Equity Acquisition Deal Structure Sales 61

Duct Tape Marketing

FEBRUARY 16, 2023

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. The government, for example, often defines small business by the number of employees. 09:23): Sure.

Technical Review 78

Technical Review Wisconsin Non-disclosure Agreement Salary 78