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The problem with that analysis is it ignores all the companies that exited through an acquisition rather than public markets. If anything, it's an endorsement

The problem with that analysis is it ignores all the companies that exited through an acquisition rather than public markets. If anything, it's an endorsement of M&A.

raw_anon_1111 10mo ago
My “analysis” was the idea of a private company that seems to want to stay independent and control their own destrone like the author of the submission wants. There are only two ways to stay independent - stay private forever or go public. Once you take outside funding, you really have no choice but an acquisition or go public. VCs don’t want to get tiny dividend checks. Even public shareholders will insist on a sale at the right price
- airstrike 10mo ago
  Going public doesn't keep you independent, though, unless you were already the kind of unicorn that has enough pull to own a massive amount of shares and/or a special class of them
  - raw_anon_1111 10mo ago
    Isn’t that what I just said? > Even public shareholders will insist on a sale at the right price
    - airstrike 10mo ago
      Yes, but that isn't all you said and it isn't even right. Public shareholders generally don't insist on anything as they are dispersed. They may elect directors to the board, but that question gets into all sorts of dynamics about who actually really votes when annual meetings come around, board independence, activist shareholders and whatnot. Put all of that aside and assume for a second that directors are a perfect representation of shareholder interests. Boards do not "insist on a sale". Instead, they may have the _fiduciary duty_ to consider bona fide acquisition offers and take the decision that maximizes shareholder value, triggered upon certain conditions (cf Revlon Duties)
      - raw_anon_1111 10mo ago
        How many times have the board refused a sell for the right amount of money.
        airstrike 10mo ago
        That is not "insisting on a sale". Selling for the right amount of money is literally the right decision to make!
        raw_anon_1111 10mo ago
        The entire submission is about someone who doesn’t want to be acquired even at “the right price”. You don’t have that option when you take outside investors.
        elwatto 10mo ago
        Not at all, we believe the asset is worth a lot more :)
        airstrike 10mo ago
        I believe you. I don't know the specifics of your company so I can't give you valuation advice, but I'd just like to add that, in my experience, I've seen lots of C-level teams and Directors refuse to sell even when a great offer was on the table because they believed they were worth more. In numerous cases, it turns out they were wrong and the company either fizzled out or sold to a different buyer a year or two later for much less than they could have gotten. I'm talking refusing a $3.5 billion offer because you think you're worth $4B, only to sell for $2B later. Not every deal is a good deal, but remember as an insider who's built the company you're also likely somewhat biased. There's nothing morally wrong about selling if it is quote-unquote "the right price". I can't really name names in public, but email is in profile if you ever want to chat
        airstrike 10mo ago

The problem with that analysis is it ignores all the companies that exited through an acquisition rather than public markets. If anything, it's an endorsement of M&A.

raw_anon_1111 10mo ago

My “analysis” was the idea of a private company that seems to want to stay independent and control their own destrone like the author of the submission wants. There are only two ways to stay independent - stay private forever or go public. Once you take outside funding, you really have no choice but an acquisition or go public. VCs don’t want to get tiny dividend checks. Even public shareholders will insist on a sale at the right price

airstrike 10mo ago
Going public doesn't keep you independent, though, unless you were already the kind of unicorn that has enough pull to own a massive amount of shares and/or a special class of them
- raw_anon_1111 10mo ago
  Isn’t that what I just said? > Even public shareholders will insist on a sale at the right price
  - airstrike 10mo ago
    Yes, but that isn't all you said and it isn't even right. Public shareholders generally don't insist on anything as they are dispersed. They may elect directors to the board, but that question gets into all sorts of dynamics about who actually really votes when annual meetings come around, board independence, activist shareholders and whatnot. Put all of that aside and assume for a second that directors are a perfect representation of shareholder interests. Boards do not "insist on a sale". Instead, they may have the _fiduciary duty_ to consider bona fide acquisition offers and take the decision that maximizes shareholder value, triggered upon certain conditions (cf Revlon Duties)
    - raw_anon_1111 10mo ago
      How many times have the board refused a sell for the right amount of money.
      - airstrike 10mo ago
        That is not "insisting on a sale". Selling for the right amount of money is literally the right decision to make!
        raw_anon_1111 10mo ago
        The entire submission is about someone who doesn’t want to be acquired even at “the right price”. You don’t have that option when you take outside investors.
        elwatto 10mo ago
        Not at all, we believe the asset is worth a lot more :)
        airstrike 10mo ago
        I believe you. I don't know the specifics of your company so I can't give you valuation advice, but I'd just like to add that, in my experience, I've seen lots of C-level teams and Directors refuse to sell even when a great offer was on the table because they believed they were worth more. In numerous cases, it turns out they were wrong and the company either fizzled out or sold to a different buyer a year or two later for much less than they could have gotten. I'm talking refusing a $3.5 billion offer because you think you're worth $4B, only to sell for $2B later. Not every deal is a good deal, but remember as an insider who's built the company you're also likely somewhat biased. There's nothing morally wrong about selling if it is quote-unquote "the right price". I can't really name names in public, but email is in profile if you ever want to chat
        airstrike 10mo ago