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The 10-Point Checklist For When You Sell Your Company With Founder Collective
- David Frankel, Managing Partner at Founder Collective, shares a 10 Point Checklist for selling a company, drawing from his experiences as a founder and investor.
- Patience is key in selling a company, offering founders the best chance for successful outcomes.
- The checklist includes understanding buyer motivations, committing fully to the process, managing team expectations, preparing for deals to fall apart, and hiring professionals when necessary.
- Considering the buyer's reputation, positioning your company as a solution, securing multiple bidders, and maintaining financial stability are also crucial steps.
- Assessing your growth trajectory honestly and being aware of founder burnout are emphasized in determining the right time to sell.
- Understanding buyer motivations is critical; engaging with potential acquirers before officially selling can significantly enhance outcomes.
- Selling a company is time-consuming and distracting, requiring a clear commitment from the top team for 6-24 months.
- Balancing team transparency while preventing premature exit planning is essential to maintain focus during the acquisition process.
- Professional help, like bankers and M&A lawyers, can greatly improve outcomes, especially for larger transactions.
- Competition and financial stability play vital roles in negotiation leverage, and honest self-assessment is crucial to determine the right time to sell.
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