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The real danger of going through this process is that you will get so enamored with this acquisition that the normal drudge of plugging away becomes uninteresti

The real danger of going through this process is that you will get so enamored with this acquisition that the normal drudge of plugging away becomes uninteresting in comparison. They drag you along, you stop shipping, you stop growing and then they can offer you whatever they want or nothing at all. In the end, I don't think many people are very happy post acquisition, so if you feel good about your product and team, you might want to just stop talking to them and go back to work.

throw_advice 8y ago
Yeah, big danger. I'm not super new to the whole startup / investor cycle and we got semi burned by that some years ago, i.e. wasting way too much time on something that turned out to go nowhere. My stance is to keep shipping and developing as if nothing is going on.
golergka 8y ago
Or, worse yet, you spend a lot of time and effort on this acquisition, time passes, due diligence goes through, all of your team already expects it to happen, growth stalls, everybody slacks off - and then they cancel it completely at the last moment.
- wolco 8y ago
  What I see happening at a larger scale company merger is the walkaway price clause. I wonder if it could be used here as a poison pill.
adrianpike 8y ago
This is super true and super scary. I've been involved on both sides of this a few times, and you wind up spending so much time, energy, and emotion on the possible big deal you stall out hard - and when you compare incentives between the acquirer and the acquiree, it's in their best interests to string you along to devalue, but it's in your best interests to keep doing what's made you valuable in the first place. Treat it similar to a big enterprise sale with a ton of stakeholders - establish a hard timeline with specific deadlines and penalties for missed stuff. Get it on paper, get your due diligence deliverables planned alongside regular work, and move your focus on until it's needed again.
neom 8y ago
I'd strongly strongy advise anyone in this situation to heed the OPs advice. I have been there, made this mistake, and it is BRUTAL - if you have traction, run at your traction, unless you're at risk of not being able to continue: do not get distracted.
TamDenholm 8y ago
I feel like is a common story i hear and yet every time an acquisition goes through and completes and is announced to the public, its all "congratulations" and everyones happy as larry. Maybes its just the whole millions in your bank account that makes it all a happy occasion?
- maxxxxx 8y ago
  A few million in the bank give you a lot of freedom to do interesting things in the future. I'd definitely take it.

throw_advice 8y ago

Yeah, big danger. I'm not super new to the whole startup / investor cycle and we got semi burned by that some years ago, i.e. wasting way too much time on something that turned out to go nowhere. My stance is to keep shipping and developing as if nothing is going on.

golergka 8y ago

Or, worse yet, you spend a lot of time and effort on this acquisition, time passes, due diligence goes through, all of your team already expects it to happen, growth stalls, everybody slacks off - and then they cancel it completely at the last moment.

wolco 8y ago
What I see happening at a larger scale company merger is the walkaway price clause. I wonder if it could be used here as a poison pill.

adrianpike 8y ago

This is super true and super scary. I've been involved on both sides of this a few times, and you wind up spending so much time, energy, and emotion on the possible big deal you stall out hard - and when you compare incentives between the acquirer and the acquiree, it's in their best interests to string you along to devalue, but it's in your best interests to keep doing what's made you valuable in the first place. Treat it similar to a big enterprise sale with a ton of stakeholders - establish a hard timeline with specific deadlines and penalties for missed stuff. Get it on paper, get your due diligence deliverables planned alongside regular work, and move your focus on until it's needed again.

neom 8y ago

I'd strongly strongy advise anyone in this situation to heed the OPs advice. I have been there, made this mistake, and it is BRUTAL - if you have traction, run at your traction, unless you're at risk of not being able to continue: do not get distracted.

TamDenholm 8y ago

I feel like is a common story i hear and yet every time an acquisition goes through and completes and is announced to the public, its all "congratulations" and everyones happy as larry. Maybes its just the whole millions in your bank account that makes it all a happy occasion?

maxxxxx 8y ago
A few million in the bank give you a lot of freedom to do interesting things in the future. I'd definitely take it.