181–190 of 244 posts
I know HN is one but it's too big/too impersonal for this.
I mean a place for founders to find "mentors" (i.e. people with more experience or people that have done similar things before) that would be willing to help them with things as a sale to a big company or how to structure a deal.
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> I burnt out, now I delegate lots of crap work and it works better for me and I think the team as well as they get a wider perspective. I think this is an underrated (but very accurate) opinion. While I'm not the founder of a company, I do have the tendency to shield my team from much of the insanity I deal with on a daily basis. I've made active, conscious efforts to stop doing this. When you shield your team from…
Are we talking about business decisions? My experience is, that developers are only interested in taking that risk, if they also get a share in the company and get access to internals. "Your house, your decision, your money. We are just the hired gun to do the carpenting."
Sounds like there needs to be a way for the buyer to put some skin in the game. Maybe asking for a $50k non-refundable deposit to kick things off. Sounds harsh? Well non-refundable deposits are a thing in real estate. For example in my country it is common to put 0.25% down to take the property off the market, non refundable, allowing you to do due diligence and then 19.75% deposit within 5 days non-refundable, with…
~$8m price. Asked for $25,000 break fee to cover our costs. Was balked at. Have no reason to believe they were not serious buyers as they bought another company or two.
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Require 10% of the deal in escrow after the first 2 weeks in the discovery phase. If the deal doesn't go through, the amount in escrow defaults to you. If they jerk you around on the escrow, cut them loose, they're not actually interested in acquisition
I've handled a decent volume of small tech startup m&a and I've never seen an escrow. Better advice is for the sellers to spend a decent amount of time in person with the buyers. Get to know who you are dealing with. It's a lot easier for a buyer to mislead (intentionally or otherwise) via email as opposed to in person lunches and dinners.
Sounds like there needs to be a way for the buyer to put some skin in the game. Maybe asking for a $50k non-refundable deposit to kick things off. Sounds harsh? Well non-refundable deposits are a thing in real estate. For example in my country it is common to put 0.25% down to take the property off the market, non refundable, allowing you to do due diligence and then 19.75% deposit within 5 days non-refundable, with…
This is fairly common in M&A and is called a "reverse termination or reverse breakup fee". In addition to the direct cost of having a deal fall through, you can imagine other damages from having a major competitor scrutinize your books. Some notable reverse break up fees include: * a 6 Billion dollar fee AT&T incurred for failing to complete a purchase of T-mobile. * A 10 Billion fee (avoided) if Verizon backed out o…
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Yes - this is a major function of private equity in general. They even have investment banks and firms that specialize in "buy side" versus "sell side" of the transaction.
Not for small companies that generally do less than $2M in revenue.
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BareMetrics MRR is public, check it out: https://demo.baremetrics.com/#start_date=2019-01-01&end_date... 20% growth last year or 1.7% per month. That's considered slow for a SaaS. That's likely what's driving the 3.7x multiple.
Fair and thank you for that. Wouldn't their value to Stripe be much more than 3.75x in this case?
Is there any forum or group that has people that can advise on such matters? I know HN is one but it's too big/too impersonal for this. I mean a place for founders to find "mentors" (i.e. people with more experience or people that have done similar things before) that would be willing to help them with things as a sale to a big company or how to structure a deal.
I can't even visit OP as my pi.hole blocks it :) Let me guess: another spam^H^Hads analytics^H^H^Hspy business there under the pretext of 'better user satisfaction'.