article thumbnail

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. Hiring a Mergers and Acquisitions advisor.

Merger 131
article thumbnail

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.

Insiders

Sign Up for our Newsletter

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

article thumbnail

The Corrosive Downside of Acquihires

Both Sides of the Table

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. Hire legions of young, impressionable graduates from the top engineering universities.

article thumbnail

5 Things To Consider Before Selling To A Private Equity Firm

YoungUpstarts

The investment banker or advisor you hire will help you market your company and find potential buyers. But if you care about your employees or are concerned about legacy, dive deeper into the potential buyers. This role is also sometimes referred to in the industry as the advisor. Consider Sticking Around.

article thumbnail

Acquihires 101: Tips for Founders

Scott Edward Walker

We have also recently handled a few “acquihires” (or “acqui-hires”) — which is a somewhat unique transaction, with a host of unusual issues. How is the Deal Structured? We had a busy 2018, including closing several significant M&A transactions and financings.

Founder 45
article thumbnail

The Dos And Don’ts Of Selling Your Business

Duct Tape Marketing

The government, for example, often defines small business by the number of employees. because a main street business creates the connotation in our head of that small mom and pop kind of business, maybe with a few employees. Let's talk about some of the deal structures you've seen. So I like the term main Street.

article thumbnail

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. mentor VCs, e.g., most VCs.