Thread by @gregisenberg

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M&A 101:

M&A is such a crucial part of startups, yet it is so taboo to talk bout the ins and outs of this process

Sharing some lessons I’ve learned here selling multiple companies

Let’s talk M&A!

1/ It’s never too early to start building relationships with people who might buy your company

The rule of 21:

Have a spreadsheet of the 7 companies that might buy your company and the 3 people who could make that decision

7 x 3 = get to know those 21 people

2/ Founders, we have the responsibility to our investors and employees to at least take the meeting if there is inbound interest in an acquisition

You never know what kind of offer you’ll get 🙃

3/ Every transaction is rocky so find your backchannelers

To stay sane and to stay the course, you’ll need multiple people who at the acquirer who can backchannel for you

Key: find those people early and often

4/ Your lawyer will be your best friend and in the trenches with you. Make sure it’s someone you can really trust

Top dollar lawyers don’t necessarily mean top value. There are some great small/medium size M&A lawyers

5/ Don’t take no for an answer

If one product lead/corp dev person says they aren’t interested, that means very little. It’s just one data point!

I’ve had 7 product leads tell me they aren’t interested, and the 8th one was. That led to a term sheet

Have faith

6/ Run a real “process”

Once you’ve decided you want to sell your company, set expectations and reach out to the top buyers in your space all at the same time

Crucial: pit them against each other

7/ Keep your investors engaged in this process

Deals fall through allllllllll the time when founders do not get the buy in from investors

Have calls with your major investors and get their perspective on the deal

8/ When a deal is imminent, keep your team engaged in the loop!

After all, they’ve scarified tremendously for you to get to this point

You owe it to them

9/ M&A is SEVERELY taxing on your mental health

So, have fun with the process! Treat it like a fun game

Remember: self-care is #1 priority and especially important during these uncertain times

10/ a deal isn't done until it is done

It's cliche to say but It is so true

I've got horror stories, but that's something I can share in the DMs or another time :)

Key: deals are always falling apart

11/ if you found value in this thread

1. Follow me on Twitter @gregisenberg
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