Alejandro Cremades - Selling Your Startup

1 Cover

2 Title Page CRAFTING THE PERFECT EXIT, SELLING YOUR BUSINESS, AND EVERYTHING ELSE ENTREPRENEURS NEED TO KNOW

3 Copyright

4 Dedication

5 Acknowledgments

6 Foreword

7 1 Seeding What Would Grow into Panthera Advisors Accelerated Growth through Acquisitions Inbound Interest and a Path Forward Choosing My Wingman Our M&A Journey Launching Panthera Advisors My Unwavering Commitment to Entrepreneurs

8 2 Getting Your Company Acquired M&A Is Harder Than Fundraising The Acquisition Process Media versus Your Business: What You See in the Press versus Reality Acquirer Expectations Why Most Acquisitions Fail

9 3 The Role of Investment Bankers What Is an Investment Banker? Good Cop, Bad Cop Why Bankers Add Value Getting the Right Advice Breaking Down the Fees

10 4 How to Plan Ahead Consider the Reasons Why You Want to Sell Tying Up Loose Ends The Importance of Making Yourself Expendable How to Make Yourself Expendable

11 5 Preparing the Company's Pitchbook Packaging the Message What Makes Your Company Unique? Nailing the Value Proposition for Potential Acquirers Defining Transition Plans for Potential Buyers Crafting the Marketing Plan Identifying a Powerful Flow and Structure Acquisition Memorandum Template Notes

12 6 Putting Your Finances in Order Understanding Financials The Importance of Key Metrics Why Growth and Operating Assumptions Are Critical Modeling Out a Powerful Five-Year Projection Anticipating Questions on Numbers

13 7 Understanding Your Valuation Variables Affecting Your Startup's Value Common Methods of Business Valuation How to Value Pre-revenue Startups How to Increase Your Valuation Faster Valuation versus Terms Why You Never Want to Disclose Your Valuation Avoiding High Valuations with No Rationale

14 8 Building the Target List The Importance of Building the Target List Ways to Identify Potential Buyers Vetting Buyers for the Right Fit Using Partnerships to Trigger Acquisitions How to Make Contact with Interested Parties

15 9 The Communication Process with Buyers Liabilities and Responsibilities How to Handle Communications Gauging Initial Interest Nailing the Follow-Up Finding the Decision-Maker

16 10 Preparing for a Successful First Meeting Finding Out the Strategic Road Map of the Buyer Agreeing On the Meeting Location Setting Up the Agenda for the Meeting Follow Up with Emails to Keep Them Warm Understanding How to Address Concerns Questions Potential Acquirers May Ask You

17 11 Getting to a Letter of Intent (LOI) Why an LOI Is So Important Breaking Down the LOI Comparing Valuations Measuring Suitability of the Potential Buyer Hostile versus Friendly Buyers Considerations before Signing The LOI Template

18 12 Communication with Stakeholders The Role of the Board of Directors Keeping Investors Updated in the M&A Process The Dos and Don'ts with Employees Note

19 13 Negotiating the Price Tag Price versus Terms Communicating Outcomes Pushing for a Deadline Increasing Price with a Bidding War Maximizing Value on the Buyer and Seller Sides Thinking Like a Buyer

20 14 The Due Diligence Stage Putting Together the Deal Room Validating Your Claims The Dos and Don'ts During Meetings Managing the Flow of Information What to Look for in the Potential Buyer

21 15 The Purchase Agreement How to Review the Purchase Agreement Terms and Clauses to Watch Typical Purchase Agreement Outline Lawyers and the Purchase Agreement Choosing the Right M&A Lawyer Dealing with Legal Counsel

22 16 Strategic versus Financial Acquisitions Different Types of Acquisitions Reasons for Strategic Acquisitions How to Know What Drives the Buyer's Motivation Why Revenues Take a Back Seat on Strategic Deals

23 17 Ways to Kill a Deal Not Respecting the Buyer Making Changes and New Demands Lack of Commitment from the Team How You Communicate with Employees and Customers Withholding Information Note

24 18 Legal Considerations Regulations and Regulators Due Diligence and Assumed Liability Intellectual Property Working Capital Escrows Contracts Warranties and Indemnifications Stockholder Approval Noncompete and Non-solicitation Agreements Stock versus Asset Sales Buying Companies That Are Not Incorporated Liens and Encumbrances Note

25 19 Closing the Deal The Anatomy of an M&A Deal Closing Closing Preparations Closing Times and Locations Speed to Closing Accounting and Taxes Closing Checklist Wrapping Things Up

26 20 Transitioning to a New Phase Vesting and Revesting Post-acquisition Integration Looking Forward Notes

27 21 The Emotional Roller Coaster during Acquisitions Anxiety Understanding the Process Depression Acceptance Happiness

28 Glossary

29 About the Author

30 Index

31 End User License Agreement

1 Chapter 2 Figure 2.1 Business Acquisitions Process

2 Chapter 3 Figure 3.1 Banker Fees

3 Chapter 8Figure 8.1 How to Make Contact with Interested Parties

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2 Table of Contents

3 Begin Reading

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