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THREADM&A 101:
M&A is such a crucial part of startups, yet it is so taboo to talk bout the ins and outs of this process
Sharing some lessons Iâve learned here selling multiple companies
Letâs talk M&A!
1/ Itâs never too early to start building relationships with people who might buy your company
The rule of 21:
Have a spreadsheet of the 7 companies that might buy your company and the 3 people who could make that decision
7 x 3 = get to know those 21 people
The rule of 21:
Have a spreadsheet of the 7 companies that might buy your company and the 3 people who could make that decision
7 x 3 = get to know those 21 people
2/ Founders, we have the responsibility to our investors and employees to at least take the meeting if there is inbound interest in an acquisition
You never know what kind of offer youâll get
You never know what kind of offer youâll get
3/ Every transaction is rocky so find your backchannelers
To stay sane and to stay the course, youâll need multiple people who at the acquirer who can backchannel for you
Key: find those people early and often
To stay sane and to stay the course, youâll need multiple people who at the acquirer who can backchannel for you
Key: find those people early and often
4/ Your lawyer will be your best friend and in the trenches with you. Make sure itâs someone you can really trust
Top dollar lawyers donât necessarily mean top value. There are some great small/medium size M&A lawyers
Top dollar lawyers donât necessarily mean top value. There are some great small/medium size M&A lawyers
5/ Donât take no for an answer
If one product lead/corp dev person says they arenât interested, that means very little. Itâs just one data point!
Iâve had 7 product leads tell me they arenât interested, and the 8th one was. That led to a term sheet
Have faith
If one product lead/corp dev person says they arenât interested, that means very little. Itâs just one data point!
Iâve had 7 product leads tell me they arenât interested, and the 8th one was. That led to a term sheet
Have faith
6/ Run a real âprocessâ
Once youâve decided you want to sell your company, set expectations and reach out to the top buyers in your space all at the same time
Crucial: pit them against each other
Once youâve decided you want to sell your company, set expectations and reach out to the top buyers in your space all at the same time
Crucial: pit them against each other
7/ Keep your investors engaged in this process
Deals fall through allllllllll the time when founders do not get the buy in from investors
Have calls with your major investors and get their perspective on the deal
Deals fall through allllllllll the time when founders do not get the buy in from investors
Have calls with your major investors and get their perspective on the deal
8/ When a deal is imminent, keep your team engaged in the loop!
After all, theyâve scarified tremendously for you to get to this point
You owe it to them
After all, theyâve scarified tremendously for you to get to this point
You owe it to them
9/ M&A is SEVERELY taxing on your mental health
So, have fun with the process! Treat it like a fun game
Remember: self-care is #1 priority and especially important during these uncertain times
So, have fun with the process! Treat it like a fun game
Remember: self-care is #1 priority and especially important during these uncertain times
10/ a deal isn't done until it is done
It's cliche to say but It is so true
I've got horror stories, but that's something I can share in the DMs or another time :)
Key: deals are always falling apart
It's cliche to say but It is so true
I've got horror stories, but that's something I can share in the DMs or another time :)
Key: deals are always falling apart
11/ if you found value in this thread
1. Follow me on Twitter @gregisenberg
2. RT this thread
3. Sign up to my substack for startup insights at https://latecheckout.substack.com
1. Follow me on Twitter @gregisenberg
2. RT this thread
3. Sign up to my substack for startup insights at https://latecheckout.substack.com
