An acquisition can be the ideal next chapter for a startup, if done correctly.
Let me break down each of those nuggets of advice:
1.
Mindset: Stop calling it an exit
Exit sounds like an ending a terminus.
Last stop, everybody off!
It’s free, every week, in your inbox.
It may be talking to half a dozen companies at the same time.
And no one knows your company as well as you do.
Provide them with the thesis or rationale on why youre a smart strategic buy.
Define for them how your business plays into their business.
Explain how your strengths play into their weaknesses, and how their strengths play into your weaknesses.
But remember: Most people decide with their emotions, and then use facts to defend that gut-level decision.
Is it to make so much money that you and your executive team will never have to work again?
That might seem like the obvious answer if youve never been in that position before.
You have to know what you want beyond, I want to sell.
LinkedIn to find people you already know who may have worked there.
Do they just pay lip service to a slogan, or do they live it every day?
And why would they want to acquire your company?
Is it just for your patent portfolio, your market share, or your talent, too?
Hey, were a great company, and other people have noticed!
Treat your people like adults.
You should also be transparent about their futures in the event of an acquisition.
Also be ready to talk with customers as soon as a deal is done.
Help them understand the strategic rationale for the deal, and the intent of the acquirer.
Be straightforward: Things will change, but for the better.
Reassure customers that you will communicate frequently.
Timing is also critical.
Mind your reputation
Selling a company is similar to selling a house.
Its smart to talk to a number of suitors.
The difference, of course, is that you cant talk to them about each other.
That said, its important to be honest with the people with whom youre negotiating.
Finally, once the deal closes, the real work begins.
Because as I always say, you must play the long game.
