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Ask HN: Where to sell your profitable company

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Re: Ask HN: Where to sell your profitable company

#11

Post by amirmc »

I suspect the most likely buyers would be: (a) A competitor in the same space looking for market share or (b) A firm in an adjacent market looking to diversify

Those are only my initial thoughts and there are probably other ways of looking at it.

I'm guessing that one of the the three VC funded competitors could be a likely acquirer. Given that there are three of them, you might even be able to create a bidding war (assuming you have something worth bidding for, e.g tech, market insight/share).

I'd do some research on each of those companies to make sure you have something of value to them and then try to meet with the founders/CEOs informally, if possible.

Re: Ask HN: Where to sell your profitable company

#12

Post by amirmc »

to_the_top wrote: post #2

Forgot to mention, I built it up myself and still maintain it myself only and that I am looking for a exit because I want to pursue something even bigger with the funds I get from selling this.

You might want to edit your original post to include this info.

Re: Ask HN: Where to sell your profitable company

#13

Post by run4yourlives »

> the business generates around 2 million a year (CAD) in profits,

Are you serious? In Canada? Why in god's name would you sell this? Hire someone to do the dirty work for 50K and live off the rest until you grow old and gray.

Why would you even think otherwise?

Re: Ask HN: Where to sell your profitable company

#14

Post by to_the_top »

exline wrote: post #7

I've got to ask why sell? If it generates 2 million in profit a year, it should be generating plenty of cash to bank roll your next endeavor. Since you are the only one maintaining you can simply hire 2-3 people to do the work you are currently working and keep the rest of the profit. Most people here would kill to have a business that is generating 2 million in profit.

It could be an option, if you scroll to the bottom its to gain credibility and to start something even bigger, nothing else really.

Re: Ask HN: Where to sell your profitable company

#15

Post by to_the_top »

apalmblad wrote: post #10

Where in Canada are you based? Your options may vary if you're in a big market (TO, Vancouver, Montreal...) or not. That said, I'd imagine your best route is to find local investor/angel/business-mentor types who can recommend a firm that specializes in getting companies acquired. I'm based in Vancouver, and my business partner has definitely had getting-to-know-you meetings with a law firm - recommended by an invest…

Only Tdot :)

Re: Ask HN: Where to sell your profitable company

#16

Post by lizzy »

There are private equity groups that acquire companies with profits of this size. But I don't know the industry well enough to suggest names. I would try and get some names from any investment bankers you know -- maybe alums from your biz school if you don't know anyone personally.

Re: Ask HN: Where to sell your profitable company

#18

Post by SriniK »

Talk to a bank who can represent you. Typically they come up with a pitchbook/deck and try to pitch to prospective companies. They charge anywhere between 5-7% depending on your business. Best way to get to a banker who can sponsor is to talk to a lawyer who is in the startup world.

If you want to send direct messages, do the pitching and negotiations yourself, try linkedin paid service.

Re: Ask HN: Where to sell your profitable company

#19

Post by [deleted] »

SriniK wrote: post #18

Talk to a bank who can represent you. Typically they come up with a pitchbook/deck and try to pitch to prospective companies. They charge anywhere between 5-7% depending on your business. Best way to get to a banker who can sponsor is to talk to a lawyer who is in the startup world. If you want to send direct messages, do the pitching and negotiations yourself, try linkedin paid service.

[deleted]
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