Startup Blog: Take a Stand!

Taffy Williams

It may be around deal structure, testing or design of product, new hires, downsizing or firing, how much to spend on a program or some other issue. Secondly, decisions can be affected by the concerns over having a job and a salary; this even the case for the employees.

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. And wants to structure a huge payout for the employees that will remain. And will investors allow a deal to happen in the first place.

Trending Sources

Notes on the acquisition process

Chris Dixon

What you tell employees is particularly tricky. Being open with employees can lead to press leaks and can annoy acquirers. Moreover, some public companies insist that you don’t talk to employees until the deal is closed or almost closed. Employees usually get a sense that something is going on and this can put you in the awkward situation of being forced to lie to them. Certain terms beyond price can be deal killers.

Entrepreneurs experience piling on

Taffy Williams

Developing great business deals when multiple companies want to partner allows for optimization of the deal structure to provide the maximum return. Employees can become unhappy with management or feel compensation or conditions are unfair.

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. 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. Selling a business is an interesting ride.

Knowing When It’s Time To Sell Your Startup

YoungUpstarts

This deal-of-the-day service was founded in November 2008 and quickly became a sensation. 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.

A Summary of Current Trends in Canadian Mergers and Acquisitions - 2011

Recent Buzzes - VC Experts, Inc.

With keen international interest in Canada's resource sector, the return of financial buyers, strategic investors looking to pursue acquisitions as a means of increasing earnings, and the recent uptick in Canadian "mega-deal" activity, there is no better time to discuss the M&A trends unfolding in 2011. HOSTILE DEALS. s arrangement to collapse its multiple voting share structure, will continue in the coming year.

in search of.the ideal term sheet

Seed Stage Capital

A 3x liquidation preference, for example, means the VC gets to take out 3 times his/her initial investment before founders and employees get anything. For any large deal, they will convert and be treated like the founders and employees.

Selling Your Business: An Interview with Louis Crosier

Growthink Blog

While you can listen to the interview yourself here , two of my favorite points were as follows: -1- Your choice of corporate structure (e.g., Fortunately, you can, for the most part, change your corporate structure down the road. Are there key employees? What are the main types of deal structures when selling your business, such as selling for all cash or for all stock?

The Corrosive Downside of Acquihires

Inc Startups

The Aqui-hire Business Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. And wants to structure a huge payout for the employees that will remain. I know many rank-and-file employees.

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

intrapreneurs, e.g., the employee of GE who is tasked with launching a new business. I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time.

Goldman Sachs / SEC: political witch-hunting is no way to change a market

Fred Destin

Reading the allegations against Goldman Sachs and Fabrice Tourre in the case of structured CDO scandal (aka Abacus), I am reminded of Spitzer and how a General Attorney used a witch-hunt as a political tool, only to be later exposed himself in the company of barely clad ladies.