Put health above everything else.
Get that surgery done. Heal.
There is always time to make more money.
Ask HN: Tired founders facing acquihire – please advise
61–70 of 85 posts
Re: Ask HN: Tired founders facing acquihire – please advise
#62Sounds like a good opportunity has come along at the right time. You didn't really give any reasons not to go for it.
> We have been working 80+ hours weeks without weekends and extremely low pay. My health has been declining (I was recently injured and need surgery but cannot without better insurance) and I had to move away from friends and family. I'm still young but my savings have essentially run out and I have become somewhat disillusioned by startup life.
This is a big reason to go for it. You have an exit on the table that also provides a well paying job, good insurance, and a break from startup life.
Re: Ask HN: Tired founders facing acquihire – please advise
#63You're not in it to win it anymore. Get out while the getting is good, relax a bit, prepare for your next shot.
Re: Ask HN: Tired founders facing acquihire – please advise
#64consider the sunk-cost fallacy... you're focusing a lot on your 80+ hour work weeks which is clouding the judgment in front of you: a successful business exit into a comfortable job.
the alternative is competing against this company where you don't think you can win. take the money.
Re: Ask HN: Tired founders facing acquihire – please advise
#65I have a software business.
On business, if our software cannot provide enough additional value to customers, then the customers should use one of our competitors, and we'll move on to another market. On personal, I've sacrificed all the above as well, but I don't think of them. My customers are much more important to me.
If the 80+ hour weeks and extremely low pay are important decision points for you, then you should choose the high paying job.
I wish you all the best.
Re: Ask HN: Tired founders facing acquihire – please advise
#66Health first. Always.
I screwed up my health fighting to keep my startup alive.
You can always try it again if you are healthy.
Re: Ask HN: Tired founders facing acquihire – please advise
#67Earlier quoted context omitted.
If there the acquisition price has a scheduled payout, don't put too much weight on any dollar amount that doesn't get paid out immediately as cash. You could get fired, or decide to quit, post-acquisition on day 2. Know what that means to walk away earlier than planned. Also, having sold a company, I can't stress enough the value of having a good lawyer handle the legal bits. The last thing you wanna be dealing with…
> If there the acquisition price has a scheduled payout, don't put too much weight on any dollar amount that doesn't get paid out immediately as cash. You actually cannot take this too serious. Often an earn-out depends on achieving certain revenue/ebitda/milestone targets. However, after the acquisition, you will find that someone else is in control over the resources you get (e.g., employees, budget, etc.). In othe…
Having been through this personally in the past two years, I cannot amplify this comment enough.
If you have earnout targets based on resources such as headcount, marketing spending, or anything else not under your control, you either have to negotiate that the payout is triggered if resources fall, or accept that you will likely be manipulated out of the money by future resource constraints.
Re: Ask HN: Tired founders facing acquihire – please advise
#68You gave no reason at all to reject the offer. And I cannot think of any too. How an offer for something not even you believe it is worth something can be "low ball"?? Unless you have strong signaling that working at the acquiring company would be a nightmare (more than your current one), sell it now. And consider it fair! My impression is that your only hesitation is because you are comparing your situation to an hi…
Exactly, obvious decision here. You don't have faith in your own business, take the offer.
Re: Ask HN: Tired founders facing acquihire – please advise
#69Don't give up. You CAN compete. You can do this, BELIEVE! I would ask them how they determined their offer price though....good information to have.
This is too emotional. Emotions are the first to go when you get punched in the face.
Re: Ask HN: Tired founders facing acquihire – please advise
#70Hold out to at least show your investors a bit of growth, even 20% more would be a huge return annualized (if you've only held it a couple of months). I would also want to pay myself my opportunity cost in lost wages.
If they're a big firm and they want into your established and competitive industry, you're the cheapest and safest way in, so remember you have a lot of bargaining power.