As an entrepreneur, the time of selling your company can be a really hard time for many. Startup sales strategy however has evolved over the years and now there are different types of selling your startup. With that said, in this article, we will take a look at the most important steps in selling a business and if you are someone who is looking to sell your startup, then these pointers will help you in that endeavor.
- Spending time with the Acquirer: The first and foremost thing that you should focus on is to know more about the acquirer. While, some entrepreneurs might feel like it is a waste of effort to spend time with the acquirer of your business. And most would say the best thing that you can do after finding someone to acquire your business is to sign the term sheet as quickly as possible to end that transaction quickly. But this time, you are spending with them might help you to know more about their motives and what are their plans after they acquire your company. Apart from that, you might also be able to learn a lot from them and you might be able to use these learnings in the future when you are planning to acquire a startup for yourself. This time, that you are spending with them might also help you to create a good network which can also be useful to you in the future.
- Understand their Business Model: After understanding more about the acquirer and their motivations, the next thing that you should know about is their business model. What this will help you to understand is the potential synergies that will be there between your company and the acquirer’s company. While selling your startup, they are also buying your team as well as your technology and owing to this reason, it is important that you get to know more about their business models.
- Be Honest: When you are going to the phase of selling your company, in order to raise the asking price, you might be tempted to show your growth numbers in the best possible lights. Even with that being the case, it is important that you are honest with your numbers so that the buyer can not only take the best-informed decision but it will also help you to gain their trust which is crucial to survive in the current highly unforgiving corporate realm. This will also help you to continue have a great relationship once they acquire your business. So, make sure that you are honest when talking to a potential buyer for your business.
- Take Objective Decisions: When entering into a negotiation, make sure that you don’t let your emotions take the best of you which might lead to rash decisions and this in turn can hurt you and your company in the negotiation table. So, make sure that you are able to analyse and evaluate business data so that you can make the best decision for both you and your company. Also, make sure that you have the help of a legal and business expert so that you can leverage their experience during the negotiations to get positive outcomes.