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    Power Your Exit 

    Without Leaving Money or Regrets on the Table

     

     

    Co-Pilot & Lead Your Exit Deal over $1M

    Focus: sell-side SaaS & CPG Startups

     

    We makes deals simple & attractive to both the sellers & the buyers

    so they all get what they want.

  • FQA

    First find out whether you're looking for a broker or an M&A Advisor

  • M&A Advisory (> $1M ) -

    How It Works

    When Selling Your Startup

    1

    Deal Strategy

    • Timing
    • Valuation & pricing
    • Deal structure 
    • Buyer strategy
    • Momentum building
    • De-risk
    2

    Financials & Records

    • P&Ls, expenses accounts
    • Pro-forma statements (projections)
    • Revenue reports, budgets
    • Financial schedules
    • Sales ready + data room
    3

    Inviting Bids

    • Timeline 
    • Objectives
    • Selection process
    • Buyer trust-building
    • Initial buyer due diligence
    4

    Letter of Intent

    • Negotiate terms & timing
    • Pricing consideration
    • Transaction structure
    • Exclusivity
    • Bring in a lawyer or work with yours
    5

    Due Diligence

    • Due diligence on the buyer
    • Due diligence for the buyer
    • Virtual data room
    • Don't close a deal without due diligence 
    6

    Final Offer

    • Negotiate final terms 
    • Closing does not finalize until the money hits your bank

  • Step 1A: Exit Tax Planning

     

    Plan for a Clean Exit with Better Growth & Valuation

  • Additional Considerations

    M&A process is complex.

    You will not be able to see everything when you choose to do it alone.

    Valuation

    • Services-based startups: 1x to 2x of annual revenue (3x to 5x happens).
    • CPG Ecommerce: 3x to 6x of annual revenue or multiples based on EBITDA.
    • SaaS: 5x to 10x of annual recurring revenue (ARR), (20x to 30x of ARR happens).

    Negotiation

    • You can't negotiate well if you don't have an exit strategy and proper planning.
    • You can't negotiate well if you don't understand the buyers.

    Pre-Sale Planning

    * This is a critical part for deals do fall apart at the last hour. Strategy first. Then Planning.

    Post-Closing Strategy

    * How to manage your fund and "break up".

    M&A Advisor vs Business Broker

    • Traditionally, M&A Advisors (investment bankers) are for mega. deals ($100M and up) and business brokers are for smaller deals. 
    • Now with the remote work movement, many independent M&A Advisors are open to micro deals (usually $5M and less).
    • A micro M&A Advisor usually guides you through the M&A process proactively.
    • A broker finds you the buyers with limited scope. The process is passive.
    • To find buyers, you can list on platforms like Microacquire (I'm an M&A Advisor on Microacquire).
       

    M&A Advisor for Buyers

    • If you look for guidance in the acquisition, you will want to consider two to six more steps in the M&A process. 
    • One is your acquisition strategy before you start to look for a startup to buy.
    • Another is your financing options. If you involve your traditional bank, they may have a very limited view of the valuation.
    • You will also consider your post-acquisition integration.
    • Most importantly, do due diligence on your seller's finance, IPs including patents, copyrights, trademarks, etc.

  • Four Telltale Signs to Avoid

    These Signs Often Affect the Closing Rate of The Deal

    broken image

    Seller Fails to Prepare

    • Fail to sell on the way up.
    • Fail to have clean and solid financials & records for the buyer due diligence.
    • Fail to go through the process, physically and emotionally sometimes arduous.

     

    broken image

    No or Poor Due Diligence

    • Seller wants to sell desperately and skip the due diligence on the buyer.
    • Pooer data room preparation.
    • Buyer not doing proper technical due diligence.
    broken image

    Seller is Confused

    • Seller is not 100% sure for the "WHY" to sell
    • Seller is unsure of the target buyer.
    • Seller is confused with the process.
    • Seller's wants and actions are in conflict.
    broken image

    Valuation Attachment

    • Seller is not flexible in terms of the price and the terms.
    • Seller focuses only on the price and ignores other critical parts of the deal.

  • Consider Your Exit Options

    Again, if you don't want to put your startup on a discount sales, consider who will help optimize your exit.

  • Ready to Work with Us as

    Your M&A Advisor?

    Before You Reach Out, Consider the Following:

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    M&A Advisory services is an investment.

    Consider your ROI

    (return on investment).

    If you worry about our price, keep this in mind: what we can get you is more than paying for yourself, our team, your whole deal team (legal etc) and more. So it is irrelent to compare us to any other platforms or advisors if price is one of your main concerns.

     

    Our co-pilot process typically helps increase valuation & cash; thus, getting you more to pay for legal and everyting else and still have more for yourself than other DIY or assisted process.

    Ready to have a chat?

  • Free Resoruces on M&A

    I'm also an M&A Advisor on Acquire.com.

    You can find me there if you list your startup for sale (free) or

    if you sign up as a buyer.

     

    Learn M&A fundamentals completely free.

    Click the link below.

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