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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.

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Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

For convertible notes, the only liquidity event we need be concerned with is an acquisition of the startup in the near future, before the maturity date; otherwise, the notes will convert to equity of one kind or another, and the eventual sale of that equity (in a public offering, acquisition, or private sale) is a different subject for another day.

Finance 79
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How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

ME: Sure, but maybe that competitor would further validate and grow the market, which could increase your sales and make you even more attractive to a buyer! It’s not the number, it’s the whole term sheet. That means you have to be that sure that that’s the number, regardless of deal structure.

Sales 235
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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

As such, you should make sure to think of the proposals as an investor and get a reasonable term sheet. Not that they were trying to take advantage of me necessarily, but it happened because of the deal structure. Instead of putting in money, you’re putting in time. Here are some of my favorite things to avoid.