Zapier acquired Makerpad 12 months ago today.
12 thoughts on selling a company:
It's impossible to not think about it. So just get it out of the way. Make a shortlist of your big wants (just don't keep staring at it!)
Mine were:
Don’t say your number first.
Plot out some scenarios and valuations - ask advisors if you can.
Be prepared that their offer may be anywhere in or out of your range.
Practice not visibly reacting when a number is said to you and what your response should be.
This is likely the most important thing to happen in your working life.
It’s not the same level for the acquiring company.
Just know that and set your expectations accordingly.
You’re in a rush. We always are.
The acquiring company aren’t in the same rush as you.
It’s good if there are external factors that give a deadline.
For me, the potential UK Capital Gains Increase on 3rd March 2021 gave us a deadline.
Team + tech = Acquihire. Valuations are lower.
Team + tech + traction = Sweet spot. Higher valuations.
No. It. Isn’t.
I researched other acquisitions and naively thought ours would be much simpler.
Most deals have the same experiences. Be prepared.
It will be stressful. I don’t deal with stress very well.
I have an assistant (training to be a therapist). I wish I had her through the deal process.
Get the bad stuff out with someone independent, away from your personal life.
Acquisitions are all-consuming. It takes up every moment in your brain.
Let work distract you. You need to keep the business growing.
You don’t want a revised offer or the deal to fall through last minute while you’ve been planning your dream vacation.
They are expensive but worth it.
You won’t be able to even think of all the things they’ll have to deal with.
My dad is a lawyer too so I ran lots of things by him.
Deals fall through and an offer can change. Remember why you're doing this. And if the number changes, does it still meet the goals you had before you started the process?
Try to prepare for some curveball scenarios and write them down.
But this is a business deal. Yes, make sure your baby is happy but leave your ego out of it.
I’m lucky, I hired my best friend who advises companies through acquisitions & he explained everything like I was 5 years old. He mediated the whole deal.
(if you want to read about the deal it was covered here)
🙏 Cheers for reading.
Congrats on the exit and thanks for sharing
thanks for sharing