How I Decided Who Should Buy My Startup

You have a choice if you make the right decisions

A Tale of Two Startups

I’ve been working within the startup universe for over 20 years. To solve a thorny problem that I had tons of experience with, I founded ExitEvent to connect startups to better information and resources.

Phase 1: Decision time.

I couldn’t hand ExitEvent off to an employee. I had a couple employees by this time, but they were very good at doing their specific jobs. I was still building out the tech, but more importantly I was still running point on the mission. Plus, I had tried the handoff route before with a previous company and that had blown up in my face.

Phase 2: Developing the selection criteria

The first thing I did was map out who should buy my company and why, then I balanced that against who I could reach and what the prospects were for demonstrating the value of the company in a short period of time.

  • I didn’t want a content site, because it was clear at that point that advertising against content was a dying model. I had been watching the forward-looking data on my ad revenue stall while the marketplace revenue rose. Eventually, I would warn all the potential acquirers about this. Very few of them cared, because the ad numbers were still high enough to be attractive.

Phase 3: Selecting the Final Four

I wasn’t doing Phase 1 or Phase 2 in a vacuum. I was talking to people at the same time I was deciding who I should be talking to. In the end, a lot of those companies fell away.

I’m a multi-exit, multi-failure entrepreneur. Sold ExitEvent. Building TeachingStartup.com & GetSpiffy. Former Automated Insights. More info at joeprocopio.com

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