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How to Decode an Acquirer’s Maximum Offer

Imagine walking into a car dealership knowing the lowest price the dealer will accept. That knowledge would give you an unfair advantage in negotiating. Instead, buying a car from a dealer often leaves us wondering if we could have pushed for a better deal.

Now imagine selling your business knowing exactly how far you could push an acquirer. Knowing an acquirer’s upper limit is challenging unless you have a bug planted in their board room. However, suppose your potential acquirer is a publicly-traded

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You Want Fries With That?

There are lots of reasons big companies buy little ones. Maybe a strategic acquirer wants to enter a new geographic market or thinks owning your company will give them more pricing authority.

One of the most compelling reasons a large corporation would acquire a seven-figure business is to give their sales reps another product to sell. A sales team is one of the most expensive investments a large corporation can make. Good salespeople cost money to recruit, years to train, and a small fortune to keep happy.

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The Maker vs. The Manager

How much time are you getting for creative work these days? If you don’t have time to think, it may be worth understanding the framework of the maker vs. the manager.

Paul Graham first introduced the distinction between a maker and a manager in a 2009 blog post.

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4 Things Led to a Doubling of This Company’s Value

Sue Bryce had always dreamed of selling her photography education membership website, so when she received an inquiry offer from a private equity group doing a rollup in her industry, Bryce was excited.

Along with the website, Bryce’s company had several other revenue sources, including conferences, awards, and accreditations for photographers. All told, they were doing almost $7 million in revenue, and Bryce figured she had a shot at hitting her number.

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How Hotjar™ Used a Beta Group to Bootstrap Their Way to $40 Million in ARR

There’s a well-trodden path to building a successful technology company: Develop an idea, raise a bunch of money, and sell your baby for a truckload. Most founders who chose this route are down to single-digit stakes of equity by the time they sell, but if the acquisition price is large enough, it works out just fine for everyone.

But it’s a high-stakes racket, and for every winner, there are probably dozens of losers in the ditch.

There is an alternative to jumping on the fundraising hamster wheel.

Read More ›
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How to Decode an Acquirer’s Maximum Offer

Imagine walking into a car dealership knowing the lowest price the dealer will accept. That knowledge would give you an unfair advantage in negotiating. Instead, buying a car from a dealer often leaves us wondering if we could have pushed for a better deal.

Now imagine selling your business knowing exactly how far you could push an acquirer. Knowing an acquirer’s upper limit is challenging unless you have a bug planted in their board room. However, suppose your potential acquirer is a publicly-traded

Read More ›

You Want Fries With That?

There are lots of reasons big companies buy little ones. Maybe a strategic acquirer wants to enter a new geographic market or thinks owning your company will give them more pricing authority.

One of the most compelling reasons a large corporation would acquire a seven-figure business is to give their sales reps another product to sell. A sales team is one of the most expensive investments a large corporation can make. Good salespeople cost money to recruit, years to train, and a small fortune to keep happy.

Read More ›

The Maker vs. The Manager

How much time are you getting for creative work these days? If you don’t have time to think, it may be worth understanding the framework of the maker vs. the manager.

Paul Graham first introduced the distinction between a maker and a manager in a 2009 blog post.

Read More ›

4 Things Led to a Doubling of This Company’s Value

Sue Bryce had always dreamed of selling her photography education membership website, so when she received an inquiry offer from a private equity group doing a rollup in her industry, Bryce was excited.

Along with the website, Bryce’s company had several other revenue sources, including conferences, awards, and accreditations for photographers. All told, they were doing almost $7 million in revenue, and Bryce figured she had a shot at hitting her number.

Read More ›

How Hotjar™ Used a Beta Group to Bootstrap Their Way to $40 Million in ARR

There’s a well-trodden path to building a successful technology company: Develop an idea, raise a bunch of money, and sell your baby for a truckload. Most founders who chose this route are down to single-digit stakes of equity by the time they sell, but if the acquisition price is large enough, it works out just fine for everyone.

But it’s a high-stakes racket, and for every winner, there are probably dozens of losers in the ditch.

There is an alternative to jumping on the fundraising hamster wheel.

Read More ›
It looks like there is no more content available.

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