Learn how to plan your exit in this short course from Acquire.com founder, Andrew Gazdecki
What you'll learn in this course (table of contents)
- Why is acquisition prep so important? (5 mins)
- What is the goal of acquisition prep? (2 mins)
- Basic acquisition prep roadmap (4 mins)
- Basic acquisition prep docs (5 mins)
- What are your acquisition goals? (8 mins)
- What buyers want from you? (3 mins)
Time to complete: 27 minutes
You can complete this course in any order you like. We recommend starting with topics you're least comfortable with and then moving on to others for a refresher.
Why is acquisition prep so important? (5 mins)
How preparation helps you sell
- Explains your business: Clarifies your business model for buyers, increasing interest.
- Boosts leverage: More buyer interest boosts your negotiating power.
- Faster due diligence: Pre-answered questions speed up the acquisition process.
- Creates goodwill: Shows you're serious about selling, setting a positive tone.
- Prevents problems: Identify and resolve issues early, avoiding deal-breakers.
- Maximize your valuation: Attracts more offers to improve terms and price.
Need help preparing your startup for acquisition? Drop us a line.
What is the goal of acquisition prep? (2 mins)
Preparation closes the knowledge gap between you and potential buyers. Ensure buyers get a comprehensive understanding of your business and you'll attract more offers.
Need help preparing your startup for acquisition? Drop us a line.
Basic acquisition prep roadmap (4 mins)
How to prepare your startup for acquisition
- Tidy your financials: Prepare a 24- to 36-month profit and loss (P&L) statement.
- Build your data room: Collect all your acquisition docs in one sharable location.
- Complete your profile: Build credibility with a fully-completed Acquire.com profile.
- Set clear outcomes: Communicate your acquisition goals and expectations.
- Stay engaged: Respond to and follow up on all buyer messages promptly.
Need help preparing your startup for acquisition? Drop us a line.
Basic acquisition prep docs (5 mins)
What acquisition documents should you prepare?
Clean financials: Include a detailed 24 to 36-month profit and loss (P&L) statement and clear revenue and profitability metrics.
- CIM (Confidential Information Memorandum): Provides an in-depth look at your business's operations and growth potential.
- Due diligence checklist: Answers common due diligence questions upfront, like growth rates and marketing effectiveness.
- Transition guide: Details the plan for transferring assets to the new owner, including your service providers and platforms.
Need help preparing your startup for acquisition? Drop us a line.
What are your acquisition goals? (8 mins)
Your acquisition goals
- Why are you selling? Clearly articulate the reason to build buyer trust.
- Will you stay on? Let the buyer know if you can help with their transition.
- What deal structures would you accept? Being open to various deal structures, like partial seller financing or earnouts, can help you attract more buyers.
- How will you find the right buyer? Be honest, responsive, and prepared and follow up on every buyer opportunity and you're guaranteed to find the best fit.
Need help preparing your startup for acquisition? Drop us a line.
What do buyers want from you? (3 mins)
How to talk to buyers
- Understand their goals: Distinguish between financial buyers (like private equity) and strategic buyers (seeking business synergies).
- Put data over emotion: Prioritize facts and credible information in your presentation.
- Price realistically: Base your business valuation on market expectations.
- Streamline information: Provide prompt, organized, and detailed answers to buyer questions.
- Be professional: Make yourself easy to work with by helping buyers overcome the obstacles to acquiring your business.
Need help preparing your startup for acquisition? Drop us a line.