article thumbnail

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

YoungUpstarts

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.

article thumbnail

The Corrosive Downside of Acquihires

Both Sides of the Table

Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. Usually the location of the engineers matters great so having offshore engineering makes acquihires unlikely. Hire legions of young, impressionable graduates from the top engineering universities.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

Think of financing an acquisition as an exercise with two parts that work in concert: 1) structuring a desired deal with a suitable target and 2) obtaining the funding. Structuring the Desired Deal. A desired deal is one that is engineered specifically with the big picture in mind.

article thumbnail

Are You Selling Your Company? Be Careful with Financial Buyers!

Scott Edward Walker

It matters because, unless you understand the motivation of a prospective buyer, it will be very difficult to make informed decisions with respect to critical deal issues. How Is the Deal Structure Different with a Financial Buyer? If you have never done a deal with a financial buyer, you are in for a rude awakening.

article thumbnail

Acquihires 101: Tips for Founders

Scott Edward Walker

The appeal from the acquirer’s perspective is that – in one fell swoop – it acquires a team of engineers. How is the Deal Structured? The acquirer is typically a large successful company, and the target is typically a failing early-stage startup. The appeal from the startup’s perspective is a “soft landing.”.

Founder 45
article thumbnail

Build Your Startup on a Vacant Domain Name

David Teten

It gives us instant credibility, high visibility in the search engines, and significant traffic, even apart from the value of the services we have built on top of it.”. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests.

Naming 114
article thumbnail

Build Your Startup on a Vacant Domain Name

David Teten

It gives us instant credibility, high visibility in the search engines, and significant traffic, even apart from the value of the services we have built on top of it.”. If we find the right partner, we can be flexible in deal structures to best align everyone’s interests.

Naming 114