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I've been through a small acquisition/acquihire twice. The first time, it was part of a small team. The second time it was my own bootstrapped one-person startu
by ryanackley 8y ago
I've been through a small acquisition/acquihire twice. The first time, it was part of a small team. The second time it was my own bootstrapped one-person startup.
My biggest piece of advice is if you believe in your product and that it's a good fit for the acquiring company, you should ask for an earn out as a sliding percentage of sales over 3 or 4 years. For example, you get 75% of sales the first year, 50% the second year, etc. In my experience, the earn out is a common part of product acquisitions. It aligns everyone on the goal of promoting and building on the technology being acquired.
- benjaminwootton 8y agoAgree with this. You would usually discuss valuation etc and complete financial and technical due dilligence once you have broad agreement.