How to value your company for sale (Part 2)
A Smart Bear: Startups and Marketing for Geeks
JUNE 27, 2011
Remember how the buyer has his own way of valuing the deal ? You’re skipping a step — trying to decide if the deal is even plausible — but how can you decide that if all you’re doing is thinking about the other side? Do you prefer Deal B?
Startup Business Development Strategies: 7 Tips For Putting.
Seed Stage Capital
JANUARY 24, 2010
skip to main | skip to sidebar 24 January 2010 Startup Business Development Strategies: 7 Tips For Putting Together Stellar Deals Business development is fun. A few tips for startups doing deals: 1. Introduce competition into every deal. Be operationally ready to do a deal.
My First Investment
A VC : Venture Capital and Technology
JANUARY 3, 2014
They had negotiated a deal to purchase an editor called BRIEF and a version control package whose name escapes me (might have been VCS?) So I negotiated a deal to invest the funds into the company for a revenue share on the sale of both products plus a warrant to buy stock in SDC. SDC ran into financial difficulties and although the sales of BRIEF and the version control software product were doing fine, they could not make the royalty payments.
Who You Gonna Call? Partnering with Goliath: A Tale of Two Announcements
MARCH 1, 2012
Our 2003 deal with HP didn’t generate a single dollar in revenue, whereas our 2006 agreement with Cisco drove tens of millions of dollars in sales and helped to make Opsware the uncatchable leader in data center software. Behind the headlines – a deal with teeth.
Entrepreneurs experience piling on
JANUARY 15, 2013
Consumers will flock to the stores to purchase the product and the company books huge increases in the sales and earnings. Developing great business deals when multiple companies want to partner allows for optimization of the deal structure to provide the maximum return.
'Show Me the Money' Tips for Business Sellers
Fresh Inc.: The Staff Blog
FEBRUARY 12, 2014
Choosing the right broker will make a big difference in the ultimate success of your business sale. He or she is going to be your guide and partner through the sale process. What to Cover in Your First Broker Meeting I asked a few of the top business-for-sale experts in the U.S.
Dialing for Dollars
DECEMBER 20, 2011
Reaching out tothem requires having a sales pitch that is product specific and demonstratesthe value of the product in general and to the possible partner. Having a business advisorand a great corporate counsel is important to the final deals structure. One local VC indicated they review more than 600 deals per year andinvest in around 6. As statedbefore, your startup will have little or no money for the first severalmonths.
JULY 12, 2011
In a deal recently, the term sheet offered by the prospective investor contained a reference to the term: "fully-diluted" The company accepted the term sheet and the lawyers drafted the documents. On review by the Company, however, it became clear that the parties had different interpretations of "fully-diluted" Due to some idiosyncracies of the company's capital structure, the disagreement had a significant impact on the deal structure.
Why Selling Your Company is Like Dancing With the Stars
Fresh Inc.: The Staff Blog
DECEMBER 3, 2013
It may help to think of your company''s sale as a bit like an episode of Dancing With the Stars. While it may look simple, one misstep could easily cost a business owner millions of dollars or scuttle the deal altogether.
Groupon Tries to Broaden Its Appeal With Self-Serve Deal Tool
Fresh Inc.: The Staff Blog
FEBRUARY 10, 2014
In a move designed to grow the business, Groupon is giving some merchants the power to create their own daily deals. In the hopes of broadening its market, on Monday Groupon is launching its first self-service platform on Grouponworks.com , enabling small businesses to create their own deals.
Knowing When It’s Time To Sell Your Startup
NOVEMBER 13, 2012
by Christopher Wallace, Vice President of Sales and Marketing for Amsterdam Printing. 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.
Piercing the Corporate Veil of Sweat Equity
SEPTEMBER 24, 2011
Three Card Monty Corporate Structures. This is my least favorite thing in the world, being offered sweat equity in a corporate structure that is unnecessarily convoluted. If you’re in a complex structure with several multinational entities, that risk is compounded.
A Summary of Current Trends in Canadian Mergers and Acquisitions - 2011
Recent Buzzes - VC Experts, Inc.
APRIL 14, 2011
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.
Keeping a Seed Financing Round Open
The Startup Lawyer
AUGUST 23, 2010
But in order to properly accomplish this, your startup will have to keep the round “open via the deal documents. Here’s what an open round mechanism might look like in a convertible note financing document: The initial closing of the sale and purchase of the Notes (the “ Initial Closing ”) shall occur on [DATE], or such other date as is agreed upon by the Company and the Purchasers (the “ Closing Date ”).
Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?
Entrepreneurs-Journey.com by Yaro Starak
JANUARY 21, 2011
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.
in search of.the ideal term sheet
Seed Stage Capital
AUGUST 24, 2009
What it means: Participation rights means the VC gets to take a pro-rata share of money in a sale even after the liquidity preference. For any large deal, they will convert and be treated like the founders and employees.
Selling Your Business: An Interview with Louis Crosier
FEBRUARY 15, 2010
During the interview, Louis made numerous key points regarding things you need to be doing while you are starting, growing, and selling your business, and then what you need to do post-sale. 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.
Knowledge Is Power: Convertible Note Financing Terms, Part IV
OCTOBER 21, 2011
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. Invested Interests angel investment deal terms fundraising startups venture capital
Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.
Cracking the Code
OCTOBER 10, 2008
Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. Labels: SaaS , sales and marketing , software. The CAC ratio determines the payback time on your sales and marketing investment: a CAC ratio of 0.5
Goldman Sachs / SEC: political witch-hunting is no way to change a market
APRIL 17, 2010
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.