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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

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.

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The Dos And Don’ts Of Selling Your Business

Duct Tape Marketing

And that's when you open the Pandora's box of getting into process, procedure, methodology is the, you know, everything in the business running through that owner is the owner, got his hands on, you know, every deal, every sale. So we could go, we could spend the rest of our time talking about valuation. So I like the term main Street.

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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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10 things I wish I knew when I sold my businesses

Jeff Hilimire

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.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

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.