What to expect in an acquisition and how to get one done

Welcome to Seed to Sequoia! Sending late today unapologetically. I realized in writing the Windsurf post that I never wrote a “typical” how to sell your company post. Here it is–hope it’s useful.

If it is useful, please tell me. And if there are topics you want to hear about, let me know! There’s so much to cover in startup strategy, GTM, and M&A it’s hard to know what to cover. Just reply. I read and reply to every one.

Nobody tells the truth about a acquisitions in public, so it’s hardly a surprise that many founders make M&A decisions based on partial or simply wrong information. Much of the advice out there is bad. Or worse, it’s based on TechCrunch articles.

This is both the best of times and the worst of times to be a founder. Many companies are in survival mode. Not enough growth to raise the next round. Burned all the bridge rounds they could get.

Some founders will want to persevere. But many founders will want to move on with their lives and do something else. They might hire a CEO, but at a sub-scale business, that may not be an option. So they choose to sell.

M&A advice

If you’re considering M&A, sure, read this article. Then get advice from a pro. Could be a board member, could be an investment banker or other advisor (like, possibly, me). No founder wants to go to their board and get basic advice on M&A. You want to go to your board with confidence, options and plan in hand. So here are the basics. It’s worth knowing this stuff even if you don’t plan to use it for years. Then get advice specific to you. Can’t say that enough.

Timeline: how long does it take to sell a company?

Most processes take at least six months–but some take years. This is because companies are bought, not sold. You run a process to find buyers, but just because you think a company should buy your startup doesn’t mean they will. The humans at that company have to decide to buy it, for whatever their own reasons are.