There is a saying in M&A: "Companies are bought, not sold." If you wait until you are tired and running out of cash to look for a buyer, you will get pennies on the dollar. The best exits are engineered years in advance. Understanding your financial projections and having solid documentation from day one is crucial.
The "IPO Dream" vs. Reality
Every founder dreams of ringing the bell at the Nasdaq. But the reality is that for every company that IPOs, 50 are acquired. And for most founders, an acquisition is a better outcome: faster liquidity, less regulatory burden, and often a better price. Conducting a thorough risk assessment early helps you identify and mitigate deal-breakers before they become problems.
Financial Buyers (PE)
Private Equity firms buy you for your cash flow. They want to optimize operations and flip you later.
- Valuation based on EBITDA
- Focus on profitability
Strategic Buyers
Competitors or partners buy you for your tech, team, or market share. They pay a premium for "synergy."
- Valuation based on potential
- Focus on technology/team
3 Steps to Maximize Your Exit
Build Relationships Early
Don't cold call Google and ask them to buy you. Instead, build partnerships. Integrate with their products. Speak at their conferences. Get on their radar as a valuable partner, not a desperate seller.
Keep Your House Clean
Due diligence is brutal. If your IP assignment agreements are missing, or your cap table is a mess, the deal will die (or the price will drop). Maintain a "perpetual data room" so you are always ready. Our Legal Launch Checklist ensures you have all essential documents in order.
Build to Last, Not to Sell
Paradoxically, the companies that are most attractive to buyers are the ones that don't need to be sold. If you are profitable and growing, you have leverage. If you are burning cash and desperate, you have none.
The "Soft Landing" Myth
Founders often hope for an "acqui-hire" if things go wrong. In 2025, these are rare. Big tech companies are cutting costs, not hiring expensive teams they don't need.
Your best insurance policy is a sustainable revenue model that generates real cash flow.
It's Not Over Until the Wire Hits
Deals fall apart at the last minute all the time. Until the money is in your bank account, run your business as if you are going to own it forever.