A Founders Guide To Selling Your Company

Dalton + Michael

Summary

In this guide, Dalton Caldwell and Michael Seibel demystify the process of selling a startup. They explain that most acquisitions are 'acquihires', deals primarily driven by the need for top-tier engineering talent rather than product revenue. The hosts emphasize that founders should only consider selling if the company's growth trajectory is capped, and warn that corporate development teams act as gatekeepers rather than direct buyers. Ultimately, they advise founders to assess their team's market value compared to individual job offers, as an acquisition is often a 'face-saving' move rather than a financial jackpot.

Chapters

  1. 0:00Should You Sell Your Company
  2. 2:15The Truth About Talent Acquisitions
  3. 7:26Analyzing Acquisition Math and Offers
  4. 14:06Understanding Corporate Development
  5. 22:15Strategic Value and Buyer Motivation
  6. 28:35Market Rewards and Revenue Growth

Topics covered

  • The reality of acquihires
  • The economics of talent acquisition

+6 more topics (full content when you follow the channel)

Transcript excerpt

When investors have a lot of demand in investing in you is probably also Yeah, when acquirers will have a lot of Yeah. >> Okay, yeah. >> And so it's this tricky catch-22 where you're like, why would I ever sell my company? And you shouldn't sell your company if you think that S-curve could get you to billions in revenue. >> Yeah, you're basically making a bet. If you think it'll be more valuable, you shouldn't sell. And if you think that maybe if your S-curve gets you to 50 million in revenue and you're at 10, >> Maybe there's a better deal there. This is Dalton Plus Michael and today we're going to talk about how to sell your company. >> I mean, look, this is one of those >> easy. >> This is one of those topics that um there's not a lot of content out there about. Uh we did not make many videos at YC about how to sell your company. >> You're not supposed to sell your company. You're sup…