{"product_id":"selling-your-startup-isbn-9781119797982","title":"Selling Your Startup","description":"\u003cp\u003e\u003cb\u003eLearn how to sell your startup from an acquisition expert\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMany entrepreneurs dream of the day their company is acquired and they secure a perfect exit. But information about the process of getting your business acquired usually comes from expensive investment bankers who typically advise late-stage startups.\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eSelling Your Startup\u003c\/i\u003e, serial entrepreneur Alejandro Cremades delivers an accessible guide on how to sell your startup. With first-hand experience as a fully exited entrepreneur, investment banker, and lawyer, Cremades describes the tips and tricks startup founders need to sell their early-stage to growth-stage business.\u003c\/p\u003e \u003cp\u003eIn this book, you’ll discover:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eThe role that investment bankers play in the acquisition process, how they add value, and how to break down their fees\u003c\/li\u003e \u003cli\u003ePreparing your company for sale, including compiling a pitch book, putting its finances in order, and building a target list of potential acquirers\u003c\/li\u003e \u003cli\u003eHow to get to a Letter of Intent, perform due diligence, and reach a purchase agreement\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003ePerfect for entrepreneurs of all kinds, \u003ci\u003eSelling Your Startup\u003c\/i\u003e is a must-have roadmap to the practical realities of company acquisition and contains proven guidance on crafting your perfect exit.\u003c\/p\u003e \u003cp\u003eAcknowledgments xvii\u003c\/p\u003e \u003cp\u003eForeword xix\u003cbr\u003e\u003ci\u003eBhavin Turakhia\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Seeding What Would Grow into Panthera Advisors 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAccelerated Growth through Acquisitions 1\u003c\/p\u003e \u003cp\u003eInbound Interest and a Path Forward 2\u003c\/p\u003e \u003cp\u003eChoosing My Wingman 4\u003c\/p\u003e \u003cp\u003eOur M\u0026amp;A Journey 5\u003c\/p\u003e \u003cp\u003eLaunching Panthera Advisors 6\u003c\/p\u003e \u003cp\u003eMy Unwavering Commitment to Entrepreneurs 7\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Getting Your Company Acquired 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eM\u0026amp;A Is Harder Than Fundraising 10\u003c\/p\u003e \u003cp\u003eThe Acquisition Process 11\u003c\/p\u003e \u003cp\u003eMedia versus Your Business: What You See in the Press versus Reality 14\u003c\/p\u003e \u003cp\u003eAcquirer Expectations 15\u003c\/p\u003e \u003cp\u003eWhy Most Acquisitions Fail 18\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 The Role of Investment Bankers 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat Is an Investment Banker? 21\u003c\/p\u003e \u003cp\u003eGood Cop, Bad Cop 22\u003c\/p\u003e \u003cp\u003eWhy Bankers Add Value 23\u003c\/p\u003e \u003cp\u003eGetting the Right Advice 25\u003c\/p\u003e \u003cp\u003eBreaking Down the Fees 26\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 How to Plan Ahead 31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConsider the Reasons Why You Want to Sell 33\u003c\/p\u003e \u003cp\u003eTying Up Loose Ends 36\u003c\/p\u003e \u003cp\u003eThe Importance of Making Yourself Expendable 37\u003c\/p\u003e \u003cp\u003eHow to Make Yourself Expendable 39\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Preparing the Company’s Pitchbook 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePackaging the Message 41\u003c\/p\u003e \u003cp\u003eWhat Makes Your Company Unique? 42\u003c\/p\u003e \u003cp\u003eNailing the Value Proposition for Potential Acquirers 43\u003c\/p\u003e \u003cp\u003eDefining Transition Plans for Potential Buyers 45\u003c\/p\u003e \u003cp\u003eCrafting the Marketing Plan 46\u003c\/p\u003e \u003cp\u003eIdentifying a Powerful Flow and Structure 47\u003c\/p\u003e \u003cp\u003eAcquisition Memorandum Template 48\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Putting Your Finances in Order 53\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eUnderstanding Financials 54\u003c\/p\u003e \u003cp\u003eThe Importance of Key Metrics 55\u003c\/p\u003e \u003cp\u003eWhy Growth and Operating Assumptions Are Critical 58\u003c\/p\u003e \u003cp\u003eModeling Out a Powerful Five-Year Projection 60\u003c\/p\u003e \u003cp\u003eAnticipating Questions on Numbers 61\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Understanding Your Valuation 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVariables Affecting Your Startup’s Value 64\u003c\/p\u003e \u003cp\u003eCommon Methods of Business Valuation 64\u003c\/p\u003e \u003cp\u003eHow to Value Pre-revenue Startups 67\u003c\/p\u003e \u003cp\u003eHow to Increase Your Valuation Faster 69\u003c\/p\u003e \u003cp\u003eValuation versus Terms 71\u003c\/p\u003e \u003cp\u003eWhy You Never Want to Disclose Your Valuation 71\u003c\/p\u003e \u003cp\u003eAvoiding High Valuations with No Rationale 72\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Building the Target List 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Importance of Building the Target List 74\u003c\/p\u003e \u003cp\u003eWays to Identify Potential Buyers 76\u003c\/p\u003e \u003cp\u003eVetting Buyers for the Right Fit 77\u003c\/p\u003e \u003cp\u003eUsing Partnerships to Trigger Acquisitions 80\u003c\/p\u003e \u003cp\u003eHow to Make Contact with Interested Parties 81\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 The Communication Process with Buyers 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLiabilities and Responsibilities 85\u003c\/p\u003e \u003cp\u003eHow to Handle Communications 86\u003c\/p\u003e \u003cp\u003eGauging Initial Interest 87\u003c\/p\u003e \u003cp\u003eNailing the Follow-Up 88\u003c\/p\u003e \u003cp\u003eFinding the Decision-Maker 92\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Preparing for a Successful First Meeting 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinding Out the Strategic Road Map of the Buyer 96\u003c\/p\u003e \u003cp\u003eAgreeing On the Meeting Location 99\u003c\/p\u003e \u003cp\u003eSetting Up the Agenda for the Meeting 102\u003c\/p\u003e \u003cp\u003eFollow Up with Emails to Keep Them Warm 103\u003c\/p\u003e \u003cp\u003eUnderstanding How to Address Concerns 103\u003c\/p\u003e \u003cp\u003eQuestions Potential Acquirers May Ask You 104\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Getting to a Letter of Intent (LOI) 109\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhy an LOI Is So Important 110\u003c\/p\u003e \u003cp\u003eBreaking Down the LOI 111\u003c\/p\u003e \u003cp\u003eComparing Valuations 113\u003c\/p\u003e \u003cp\u003eMeasuring Suitability of the Potential Buyer 113\u003c\/p\u003e \u003cp\u003eHostile versus Friendly Buyers 115\u003c\/p\u003e \u003cp\u003eConsiderations before Signing 116\u003c\/p\u003e \u003cp\u003eThe LOI Template 117\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Communication with Stakeholders 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Role of the Board of Directors 121\u003c\/p\u003e \u003cp\u003eKeeping Investors Updated in the M\u0026amp;A Process 125\u003c\/p\u003e \u003cp\u003eThe Dos and Don’ts with Employees 126\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Negotiating the Price Tag 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrice versus Terms 129\u003c\/p\u003e \u003cp\u003eCommunicating Outcomes 130\u003c\/p\u003e \u003cp\u003ePushing for a Deadline 131\u003c\/p\u003e \u003cp\u003eIncreasing Price with a Bidding War 133\u003c\/p\u003e \u003cp\u003eMaximizing Value on the Buyer and Seller Sides 133\u003c\/p\u003e \u003cp\u003eThinking Like a Buyer 135\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 The Due Diligence Stage 139\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePutting Together the Deal Room 140\u003c\/p\u003e \u003cp\u003eValidating Your Claims 153\u003c\/p\u003e \u003cp\u003eThe Dos and Don’ts During Meetings 154\u003c\/p\u003e \u003cp\u003eManaging the Flow of Information 155\u003c\/p\u003e \u003cp\u003eWhat to Look for in the Potential Buyer 156\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 The Purchase Agreement 159\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHow to Review the Purchase Agreement 160\u003c\/p\u003e \u003cp\u003eTerms and Clauses to Watch 164\u003c\/p\u003e \u003cp\u003eTypical Purchase Agreement Outline 166\u003c\/p\u003e \u003cp\u003eLawyers and the Purchase Agreement 168\u003c\/p\u003e \u003cp\u003eChoosing the Right M\u0026amp;A Lawyer 169\u003c\/p\u003e \u003cp\u003eDealing with Legal Counsel 171\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Strategic versus Financial Acquisitions 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDifferent Types of Acquisitions 173\u003c\/p\u003e \u003cp\u003eReasons for Strategic Acquisitions 174\u003c\/p\u003e \u003cp\u003eHow to Know What Drives the Buyer’s Motivation 177\u003c\/p\u003e \u003cp\u003eWhy Revenues Take a Back Seat on Strategic Deals 180\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Ways to Kill a Deal 183\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNot Respecting the Buyer 183\u003c\/p\u003e \u003cp\u003eMaking Changes and New Demands 184\u003c\/p\u003e \u003cp\u003eLack of Commitment from the Team 185\u003c\/p\u003e \u003cp\u003eHow You Communicate with Employees and Customers 186\u003c\/p\u003e \u003cp\u003eWithholding Information 189\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 Legal Considerations 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRegulations and Regulators 193\u003c\/p\u003e \u003cp\u003eDue Diligence and Assumed Liability 194\u003c\/p\u003e \u003cp\u003eIntellectual Property 194\u003c\/p\u003e \u003cp\u003eWorking Capital 194\u003c\/p\u003e \u003cp\u003eEscrows 194\u003c\/p\u003e \u003cp\u003eContracts 195\u003c\/p\u003e \u003cp\u003eWarranties and Indemnifications 195\u003c\/p\u003e \u003cp\u003eStockholder Approval 195\u003c\/p\u003e \u003cp\u003eNoncompete and Non-solicitation Agreements 195\u003c\/p\u003e \u003cp\u003eStock versus Asset Sales 196\u003c\/p\u003e \u003cp\u003eBuying Companies That Are Not Incorporated 199\u003c\/p\u003e \u003cp\u003eLiens and Encumbrances 201\u003c\/p\u003e \u003cp\u003e\u003cb\u003e19 Closing the Deal 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Anatomy of an M\u0026amp;A Deal Closing 203\u003c\/p\u003e \u003cp\u003eClosing Preparations 204\u003c\/p\u003e \u003cp\u003eClosing Times and Locations 204\u003c\/p\u003e \u003cp\u003eSpeed to Closing 205\u003c\/p\u003e \u003cp\u003eAccounting and Taxes 206\u003c\/p\u003e \u003cp\u003eClosing Checklist 208\u003c\/p\u003e \u003cp\u003eWrapping Things Up 209\u003c\/p\u003e \u003cp\u003e\u003cb\u003e20 Transitioning to a New Phase 211\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVesting and Revesting 212\u003c\/p\u003e \u003cp\u003ePost-acquisition Integration 216\u003c\/p\u003e \u003cp\u003eLooking Forward 219\u003c\/p\u003e \u003cp\u003e\u003cb\u003e21 The Emotional Roller Coaster during Acquisitions 221\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAnxiety 222\u003c\/p\u003e \u003cp\u003eUnderstanding the Process 223\u003c\/p\u003e \u003cp\u003eDepression 226\u003c\/p\u003e \u003cp\u003eAcceptance 227\u003c\/p\u003e \u003cp\u003eHappiness 228\u003c\/p\u003e \u003cp\u003eGlossary 231\u003c\/p\u003e \u003cp\u003eAbout the Author 237\u003c\/p\u003e \u003cp\u003eIndex 241\u003c\/p\u003e \u003cp\u003e\u003cb\u003eALEJANDRO CREMADES\u003c\/b\u003e is a serial entrepreneur and currently a Founding Partner of Panthera Advisors, a premier investment banking and financial consulting firm. His professional focus is on small- and medium-sized companies seeking M\u0026amp;A advice and fundraising support. He has guest lectured at NYU Stern School of Business, Columbia Business School, and The Wharton Business School. Furthermore, he is the host of the popular DealMakers podcast where some of the most successful entrepreneurs share how they did it.\u003c\/p\u003e\u003cp\u003e\u003cb\u003eContact him at alejandro@pantheraadvisors.com, follow him @acremades, and connect with him at www.alejandrocremades.com\u003c\/b\u003e\u003c\/p\u003e  \u003cp\u003eMany entrepreneurs dream of the day they can finally sell their company and reap the rewards of their work and sacrifice. But there is little information on the acquisition process currently available to founders and executives at startups. Much of what can be learned comes from investment bankers who typically work with late-stage companies and charge a fortune for their services.\u003c\/p\u003e\u003cp\u003eIn \u003ci\u003eSelling Your Startup\u003c\/i\u003e, expert investment banker and veteran entrepreneur Alejandro Cremades delivers an engaging and easy-to-follow roadmap to the startup acquisition process. From the role played by bankers and financiers to preparing your company for sale, compiling a pitch book, building a target list, drafting a letter of intent, performing due diligence, and much more, you’ll become familiar with the practical realities of what “selling your company” means in the real world.\u003c\/p\u003e\u003cp\u003ePerfect for founders, startup executives, managers, and other business leaders, \u003ci\u003eSelling Your Startup\u003c\/i\u003e is a must-have resource for anyone involved in setting strategy, encouraging growth, or engineering an exit at a startup. Even if you’re not yet at the stage where you’re contemplating an exit, \u003ci\u003eSelling Your Startup\u003c\/i\u003e shows you how to lay the foundation of a fruitful and successful endgame.\u003c\/p\u003e  \u003cp\u003e\u003cb\u003ePraise for SELLING YOUR STARTUP\u003c\/b\u003e\u003c\/p\u003e\u003cp\u003e“Don’t sell your business until you’ve read this book. \u003ci\u003eSelling Your Startup\u003c\/i\u003e is an essential resource founders have needed for a long time. The world is awash with advice on how to start a business, but Cremades shares practical wisdom on how to play the end game.”\u003cbr\u003e\u003cb\u003e —WILL GLASER,\u003c\/b\u003e Co-Founder, Sold Pandora to SiriusXM for $3.5 Billion\u003c\/p\u003e\u003cp\u003e“If you thought product market fit, fundraising, and scaling your startup were challenging, M\u0026amp;A will make those efforts look simple. Alejandro perfectly balances both the science and art of M\u0026amp;A from the sell side for entrepreneurs in this book, bringing clarity to what can feel like an extremely complex process. If you’re a founder or entrepreneur, add this to your must-read list.”\u003cbr\u003e\u003cb\u003e —REGGIE AGGARWAL,\u003c\/b\u003e Co-Founder, Sold Cvent to Vista Equity Partners for $1.65 Billion\u003c\/p\u003e\u003cp\u003e“Securing the right acquirer for your business, on the right terms, makes all of the difference in your vision being realized, or it being stolen and crushed. Use this resource to get clarity on your ideal target buyers and optimize the terms for lasting success.”\u003cbr\u003e \u003cb\u003e—KEVIN O‘CONNOR,\u003c\/b\u003e Co-Founder, Sold DoubleClick to Hellman \u0026amp; Friedman for $1.1 Billion\u003c\/p\u003e\u003cp\u003e“The multiples your investment in reading this book can deliver are off the charts. Beyond the difference in financial outcome it may have, it could make all the difference in what happens to your company and customers next, and the opportunities you will have as an exiting founder.”\u003cbr\u003e\u003cb\u003e —DUKE ROHLEN,\u003c\/b\u003e Co-Founder, Sold FoxHollow Technologies to Ev3 for $780 Million\u003c\/p\u003e\u003cp\u003e“I know of countless startups who could have benefited from the advice that Alejandro has collated here. I’m happy that this book now exists, so I can recommend it in the future to companies going through the stressful and often uncertain M\u0026amp;A process.”\u003cbr\u003e\u003cb\u003e —JACK SMITH,\u003c\/b\u003e Co-Founder, Sold Vungle to Blackstone for $750 Million\u003c\/p\u003e\u003cp\u003e“This is an essential guide for all founders. From surviving due diligence to maximizing price and terms, to getting through the emotional roller coaster, not killing your own deal and setting up a great new chapter in your life, put this book on top of your reading list.”\u003cbr\u003e \u003cb\u003e—SANDEEP AKKARAJU,\u003c\/b\u003e CEO, Sold IntelliSense to Corning for $750 Million\u003c\/p\u003e\u003cp\u003e“I’ve co-founded and sold a number of companies in my career in the tech industry. It’s always important to have great advice and counsel as you make these key transformative decisions. Alejandro’s insight will help you develop better strategy and tactics to ace this pivotal part of the journey and get the most out of the opportunities and companies you create.”\u003cbr\u003e\u003cb\u003e —DREW PERKINS,\u003c\/b\u003e Co-Founder, Sold Lightera Networks to Ciena for $550 Million\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990005367013,"sku":"NP9781119797982","price":27.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119797982.jpg?v=1761786185","url":"https:\/\/k12savings.com\/es\/products\/selling-your-startup-isbn-9781119797982","provider":"K12savings","version":"1.0","type":"link"}