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In many cases the value of your business is based on a combination of your talent with the other business assets especially market share and revenue prospects.

by davros 14y ago

In many cases the value of your business is based on a combination of your talent with the other business assets especially market share and revenue prospects. So many small businesses are acquired in a way that the founder(s) are retained and strongly incentivised to keep growing the business. One way to understand what the offerer wants is to look at the deal structure on offer to infer what they want from you. If there is a lot of emphasis on future profits then they want you to keep growing your business, if there is shares in the parent business then thats where they'll want you to focus, etc. Finally, as per Jacques article, consider other sale options - can you find other buyers and get a competitive process going, etc.

buro9 14y ago
The verbal offers (and emails) have thus far put an emphasis on shares in the parent business, above market salary and a non-trivial purchase price. From this I felt that the emphasis is towards working for the parent company over any continued growth in the community sites that I run. As the web sites continue to pay me a very modest (read: barely but just about liveable) wage. I'm of the opinion that I shouldn't really consider the sale at all. Right now: I don't need the money. And, right now: I have the freedom to work on the startup and to being the idea alive. That's worth far more to me than any monetary offer is. Mostly I'm trying to rationalise all of this so that when I explain to my girl why we continue to eat dry pasta and I turned down an offer of wealth that she doesn't thump me over the head. I'm prepared to sell a successful, profitable and growing community website. But only if doing so helps increase the chances that my startup will be a success (by giving me funds to get an extra pair of hands and a good runway with no distractions). I'm not willing to sell if it in any way jeopardises the potential of the startup. And as the startup is barely mentioned but I'm expected to be full-time, then it undoubtedly would do that.

by davros 14y ago

buro9 14y ago

The verbal offers (and emails) have thus far put an emphasis on shares in the parent business, above market salary and a non-trivial purchase price. From this I felt that the emphasis is towards working for the parent company over any continued growth in the community sites that I run. As the web sites continue to pay me a very modest (read: barely but just about liveable) wage. I'm of the opinion that I shouldn't really consider the sale at all. Right now: I don't need the money. And, right now: I have the freedom to work on the startup and to being the idea alive. That's worth far more to me than any monetary offer is. Mostly I'm trying to rationalise all of this so that when I explain to my girl why we continue to eat dry pasta and I turned down an offer of wealth that she doesn't thump me over the head. I'm prepared to sell a successful, profitable and growing community website. But only if doing so helps increase the chances that my startup will be a success (by giving me funds to get an extra pair of hands and a good runway with no distractions). I'm not willing to sell if it in any way jeopardises the potential of the startup. And as the startup is barely mentioned but I'm expected to be full-time, then it undoubtedly would do that.