I've sold 2 startups for $8M
not here to brag - but because every day I see founders here desperate to sell without knowing what it actually takes
here's what you need to know before you plan to sell your startup:
1. don't just focus on the $$
the deal terms matter as much as the amount.
earnouts can look great on paper, but understand the structure of your exit, and the pressure it might bring, before committing.
2. hire a good lawyer.
a "$500k sale" often isn't $500k in the bank. it could be $100k upfront and $400k if the business hits certain goals. know that clearly before bragging about the number.
bad terms can kill the joy of selling faster than you think.
3. make your business sellable
the biggest factor is your market segment. the trendier your space, the easier it is to sell. right now, that's AI.
the other key factor: your business shouldn't depend on you.
4. avoid depending on one platform
if you do, know exactly how it could screw you - algorithm shifts, API limits, bans, you name it. factor those risks in and time your acquisition well.
5. timing is everything
the best time to sell isn't when you're desperate - it's when you don't need to.
when your metrics are going up, not down. buyers pay for momentum, not maintenance.
6. clean up your data early
buyers will ask for everything: churn, CAC, LTV, MRR graphs, Stripe history, tax docs.
the cleaner and more transparent your data room, the faster (and less painful) the process.
7. sell to someone who gets your product
you're not selling your past performance, you're selling the future of your company. only the right buyer will see that and do it justice.
8. start selling before you're ready
in most cases, good buyers don't just slide into your DMs. work with brokers early - they'll help you find relevant acquirers while you keep building.
9. know your walk-away number
the process can drain you. set a clear minimum that makes it worth it - and walk away if it doesn't meet it.
10. prepare for the post-sale void
it's weird.
one day it's your baby, the next it's not yours anymore. think about the emotional cost too - not just the big cheque.
an exit looks great on paper and on X, but make sure it aligns with your long-term goals. don't sell out of impatience.
as for me - I'll never sell again.
(call me out if I do)
I'd rather build a profitable, long-term business with steady growth that I fully control, instead of a one-time big cheque.
that's what I am doing with my portfolio of products. trying to grow 5 products to $100k MRR, currently at 2/5
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