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We sold our company to VMware in 2014 with help from GrowthPoint Partners. Some learnings about the deal. * Find multiple firms and interview them carefully. T

We sold our company to VMware in 2014 with help from GrowthPoint Partners. Some learnings about the deal. * Find multiple firms and interview them carefully. They have to sync well with your board because you'll need a high level of trust to get the deal done. Check references. * Good advisors have done a lot of deals and have a lot of connections in the vertical you are in. They should be able to list possible acquirers off the cuff and why you are a fit. If they can't do that, move on. * You want somebody who can run the deal process - which is really time intensive - while you run the business. It's really hard to do both. * Good advisors will guide you through every step of the process from developing the pitch deck to acquirers to due diligence at the end. You'll quickly realize how little you know about any of these things if it's your first time through. If they aren't hands-on, again, move on. The fees may seem high if you've never done a deal. They are justified by the potentially huge swing in price if you get somebody good. You can be looking at a 2x difference in price if you get multiple bidders. Comp the advisors on outcome and give them unlimited upside for a great result. It's just like comp'ing sales if you've done that. Just my $0.02.

troydavis 5y ago
I echo this strongly: > * Good advisors have done a lot of deals and have a lot of connections in the vertical you are in. They should be able to list possible acquirers off the cuff and why you are a fit. If they can't do that, move on. … as well as someone else's comment that the terms in the engagement letter are negotiable. If a banker claims that their interests are aligned with yours, then turns around and delivers an engagement letter with a huge fixed fee and little or no variable fee based on outcome, either negotiate or move on. We used Cascadia Capital when Papertrail was acquired and I was very satisfied (https://www.cascadiacapital.com/case-study/papertrail/ https://www.cascadiacapital.com/case-study/papertrail/, https://www.cascadiacapital.com/story/cascadia-capital-advises-papertrail-in-acquisition-by-solarwinds/ https://www.cascadiacapital.com/story/cascadia-capital-advis...). Since we were entirely bootstrapped, their fee came directly out of our proceeds, and it was completely worthwhile. (If any founders read this, have a serious opportunity at a $20+ million offer, and want a sounding board, feel free to contact me.)
- hodgesrm 5y ago
  Same offer as Troy. Contact me for more info. Our deal size was similar and we were also essentially bootstrapped. My email is in About. p.s., Yay Papertrail. We know you guys from ClickHouse. Great to get the backstory on the outcome. ;)

troydavis 5y ago

I echo this strongly: > * Good advisors have done a lot of deals and have a lot of connections in the vertical you are in. They should be able to list possible acquirers off the cuff and why you are a fit. If they can't do that, move on. … as well as someone else's comment that the terms in the engagement letter are negotiable. If a banker claims that their interests are aligned with yours, then turns around and delivers an engagement letter with a huge fixed fee and little or no variable fee based on outcome, either negotiate or move on. We used Cascadia Capital when Papertrail was acquired and I was very satisfied (https://www.cascadiacapital.com/case-study/papertrail/ https://www.cascadiacapital.com/case-study/papertrail/, https://www.cascadiacapital.com/story/cascadia-capital-advises-papertrail-in-acquisition-by-solarwinds/ https://www.cascadiacapital.com/story/cascadia-capital-advis...). Since we were entirely bootstrapped, their fee came directly out of our proceeds, and it was completely worthwhile. (If any founders read this, have a serious opportunity at a $20+ million offer, and want a sounding board, feel free to contact me.)

hodgesrm 5y ago
Same offer as Troy. Contact me for more info. Our deal size was similar and we were also essentially bootstrapped. My email is in About. p.s., Yay Papertrail. We know you guys from ClickHouse. Great to get the backstory on the outcome. ;)