Problem
You want to sell your startup and want to be prepared or someone offered to buy your startup already and you need to get started
Solution
Use this 6-step process to prepare for your acquisition
Quick links
Steps
- Don’t stop growing (the deal might still fall through)
- Do your homework
Learn from existing acquisition stories online
Reach out to Entrepreneurs in your industry that have sold companies
- Get your house in order
Consult your accounting, legal and HR departments to get paperwork in order
Discrepancies during due diligence can hurt you or kill the whole acquisition!
Fix mistakes and holes FAST!
- Hire professionals for due diligence
CPA Firm (inspire confidence)
Valuation Firm (get the best price for yourself)
Financial/Accounting services (prepare a bunch of statements)
Law firm (organize and standardize legal docs)
- Communicate expectations
Weigh your expectations against those of the buyer by asking the following questions
Are you staying in the company?
If yes: with what responsibilites?
Do you have a say in decisions going forward?
How does your product fit into the buyer’s offering, vision and strategy
Will your product be used as you envision it?
Make sure your expectations align with your buyer’s
- Look for a culture fit
Understand the buyer’s values and beliefs and how they’re reflected in the mission statement
Do they stand for something your team can stand behind?
Think of the acquisition as selling a house, you want the best price but also make sure the buyer takes good care of it
