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

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. So we could go, we could spend the rest of our time talking about valuation. 09:23): Sure.

Technical Review 80

Technical Review Wisconsin Non-disclosure Agreement Salary 80

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

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

Jeff Hilimire

MARCH 4, 2014

With my first sale, my partners and I focused all of our attention on the details of the sale (what the valuation would be, how would it be structured, etc) and very little about what would happen with us individually. Be as open as you can when communicating with your employees. Think past the sale itself. This is a tricky one.

Private Equity 61

Private Equity Acquisition Deal Structure Sales 61

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