Selling Your Business - Where do you start?
-
Upload
k-srikrishna -
Category
Business
-
view
178 -
download
0
Transcript of Selling Your Business - Where do you start?
Selling Your Business
@ksrikrishna
http://designofbusiness.com/
All images are the copyright of the respective owners via Compfight cc.
Is everyone but you selling?
by Quixey
by Yahoo!
by Persistent
The wheel keeps on turning
• Quit reading TechCrunch or the papers
• Focus on building your business
3
• M&A is neither new or about to take off
• More startups == more M&A
• Founders always make out like gangbusters
• Founders always get screwed
• Not everything you read in the paper is true
Busting some myths
4
Photo : Ajith (അജിത്ത്) via Compfight
More than meets the eye
• Which founders did better?
• Which investors did better?
• Was the world better?
5
Broadcom adds Bluetooth software through Widcomm acquisitionEE Times, 4/19/2004
Transaction value $56MCapital raised $50M
SiRF acquires Indian Bluetooth firmImpulsesoftEETimes 1/25/2006
Transaction value $15 MCapital raised $0.5M
Qualcomm buys Bluetooth and GPS chip maker CSR Venturebeat, 14/10/2014
Transaction value $2,500 MCapital raised $125 M
Where do you start?
• Understand what you want
• What do you want?
• Why do you want to sell
6
Photo: I like via Compfight
The 3 people that matter
YOU YOUR TEAM EVERYBODY ELSE
7
Risks in Selling Your Business
• Losing focus on your business
• Scaring or losing customers
• Scaring or losing your employees
• You lose purpose 8
Photo: Uxía via Compfight
Why do people sell
• To make money
• They prefer the starting up to running
• Want to do something different
9
Photo: e-magic via Compfight
The Starting Block
• Getting stakeholder buy-in
• Knowing what’s in it for everyone
• Pulling together your selling team
10
Photo Jonas Tana via Compfight
Getting Stakeholder buy-in
• Your partners & co-founders
• Your management team
• Your board and investors
11
Taking care of
• Your partners
• Your team & employees
• Yourself
12
Your Selling Team
• Investment Bankers
• You & your partners
• Accountants
• Lawyers 13
Finding buyers
• Customers
• Competitors
• Partners
• Others 14
Process
• Pitch
• The Dance
• The Proposal
• The Due Diligence
• The Marriage 15
Photo: bubbo.etsy.com via Compfight
The Pitch
• Information Memorandum
• Your company bio
• Why anyone should care
16
The Dance
• What you want
• What they’re prepared to give
• What else you want
17
The Proposal
• Term Sheet
• Spells out terms & conditions
• Nearly engaged
18
Valuations & other esoterica
• More than just money
19
Typical cattle market
• Information asymmetry
• Customized deals
• Sealed with a hand shake
20
Photo: UNAMID Photo via Compfight
The Due Diligence
• Accounting checks
• Closet check
• Closing information asymmetry
21
Photo: pasukaru76 via Compfight
The Marriage
• Definitive Agreement
• Exchange of cash & equivalents
• Legal process of merger & acquisition
22
Photo: cleiph via Compfight
Sh*t that can go wrong
• Your partners go ape sh*t
• Your investors decide not to cooperate
• Your key employees cut loose and run
• Your customers or other suitors send you legal notice 23
Photo: livemint.com
Sh*t that will go wrong
• It will take much longer
• RBI rules will change
• Lawyers & accountants will complicate stuff
• The media will get it wrong
• One or more team member will be p*ssed 24
Photo: CarbonNYC [in SF!] via >Compfight
It’s a process
• Selling is not the end, it’s a new beginning
• It takes time and it takes a team
• Be clear about what you want
• Don’t be an a**hole, cynic or jerk 25
Photo : Kemeny_x via Compfight
Selling your business
• Is a project – maybe important but only one project
• Keep building your business
• Don’t forget to have fun!
• Be nice – its good karma!26
We’re selling all the time anyway
• HomeBound – a fun game from Zebu
• Now available on the Android Store
27
For startup insights and lessons
28
@ksrikrishna
http://designofbusiness.com/