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I've sold 4 startups. Median time from starting the process to close was 6 months, with the quickest transaction taking 2.5 months and the slowest almost 9 mont
by cbtacy 5y ago
I've sold 4 startups. Median time from starting the process to close was 6 months, with the quickest transaction taking 2.5 months and the slowest almost 9 months.
Diligence ranged from 3 weeks to 7 weeks.
Fastest transactions were private company acquisitions. Slowest were public company deals.
- anonymouse008 5y agoCurious: were there any takeaways for the question "what to build for what outcome"? As in, was there an association with time building + time in market = greater sales price? Did Higher Free Cash Flow or Higher Growth lead to a better ratio (cash v stock) for offers? Very curious -- four successes is quite the batting average
- cbtacy 5y agoIronically (or perhaps interestingly), none were built for the actual outcome. The first, third, and fourth were all built with the dream of IPO in mind. The second was built as a lifestyle business. Yeah... the batting average is why I've never done a fifth. I wanted to pull a Sandy Koufax and go out on top.
- mendigou 5y agoWow that seems relatively quick. If you're comfortable, can you share the size of these sales and their geography?
- cbtacy 5y agoAll were less than $250M, all were US companies being sold to US-headquartered companies.