Acquire Seller Office Hour from June 24, 2022

This is the recap of the Acquire Seller Office Hour on June 24, 2022. Acquire Office Hours are our way of making time to help individuals answer specific situational questions about the acquisition process as it relates to them.

Our goal from the beginning has always been to democratize startup acquisitions and offer Acquire as more than just a platform but a resource to educate the community at large.

• Panelist: Paul Kelley, VP of M&A
• Panelist: Andrew Gazdecki, Founder and CEO
• Panelist: James Graves, General Counsel

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Additional Resources

• Listing requirements
  • What types of startups can you list on Acquire?
• Guided Acquisition Process (GAP)
  • What Is the Guided Acquisition Process?
• Preparing for a sale
  • Why you must start exit planning from day one
  • How to get your startup Acquired: A brief guide to achieving what you want from an acquisition
  • What to expect from the 6 legal stages of an acquisition (Video)
• Determining value
  • MicroMRR: Free valuations and analytics for your SaaS startup
  • How to correctly estimate the value of your SaaS startup
  • How to increase your startup’s valuation and get Acquired at the price you want
  • How to correctly estimate the value of your SaaS Startup (Video)
• Marketing materials / deal book
  • 10 ways to attract more acquisition offers for your SaaS startup (Video)
• Fielding buyer inquiries
  • How to evaluate a Letter of Intent (LOI) for the acquisition of your SaaS startup
  • Letter of Intent (Video)
• Vetting buyers
  • How to evaluate potential buyers to expedite an acquisition
• Sharing company information
  • What to include in your startup’s acquisition data room
• Due diligence
  • 5 Things to remember when preparing for legal due diligence
  • Due diligence and how to survive it
• Tips and Advice
  • Chris Tung’s experience selling his startup, a Shopify/Slack App
  • Derek Homann’s experience selling his startup, Median, for $250k
  • Landon Bennett’s experience selling his startup, Userfeed

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Q&A

• What is the typical timeframe for a 10MM M&A deal?
• How startup founders can determine the right time for exit?
• What’s the minimum revenue figure required before the acquisition process can be started?
• Is it necessary to have a company or just a product with revenue is fine for getting Acquired?
• My reservation for selling is the relationship I have my clients. Any tips on how to navigate them not feeling abandoned and leaving the door open for opportunities.
• What is the “why” behind most Acquire acquisitions? Example: merger, wants a new job, looking a challenge, opportunity to make money, wants to learn.
• Why are people buying?
• Have you seen any companies on Acquire partner up with each other? Have you seen any equity swaps? How much match making is happening on Acquire by your team?
• Does Acquire ever foresee an option to make a commission fee for helping someone sell their startup? Is that the role of your advisors?
• What are some of the demographics of your audience on buy and sell side? Global representation? Age? Gender? Wealth?
• How many companies are buying startups versus how many individuals?
• What is the biggest challenge for Acquire as a company?
• Do you see many sales where the domain name and website is the most valuable asset? Mine has minimal revenue (a few hundred a month) in comparison to the domain and build out value.
• When is not a good time to Acquire? For example, we are super busy right now. Any experience with other founders in this situation?

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The content in this post is not and does not intend to be legal, financial, or any other advice or to establish a professional relationship of any kind. All information, content, and materials are for general information purposes only. Please seek the services of an M&A professional before entering into any transaction.