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


Why start from scratch when you can get a great deal on what someone else started? 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. by LJ Suzuki of CFOshare.

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.

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


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. Of course, no deal goes down without funding. by Kenneth H.

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 deal is typically structured as an asset purchase (as opposed to a stock purchase or merger) — though the acquirer often does not actually want the startup’s IP and/or other assets. Accordingly, the deal may be a mere fiction designed to get funds into the startup to be distributed to its investors.

The Pre-Seed FAQ

K9 Ventures

They talk about how deal sizes and stages were changing even back then. Q: How are most Pre-Seed deals structured? That said, you will find Pre-Seed deals in both flavors — Notes and Equity. Engineering Capital. One of the people I respect the most in the VC/PE media ecosystem is Dan Primack. I’ve been an avid reader of Dan’s Term Sheet while he was at Fortune , and now Pro Rata at Axios.

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

David Teten

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. That said, I’m not sure of the most appropriate structure.

Build Your Startup on a Vacant Domain Name

David Teten

That’s why our portfolio company Plated.com decided to structure a lease option – they offered the prior owner a small monthly lease fee for 1 year, with an option to buy at the end of the year. 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.

Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

I travelled all over the world wherever business deals were happening, gained tremendous experience and exposure to the Corporate landscape, and learned invaluable life lessons in my career. I worked out a similar deal the next go around, and the snowball started rolling from there. Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc.

Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

A simple example would be if Customer A signs a one-year deal at $10,000 per month, and Customer B signs a three-year deal at $5,000 per month. Consistently delivering a deal per month in this progression gives you a total of 78 months of cumulative recognized revenue.