Back in 2013, the decision to sell Waze to Google for $1.15 billion was a life-changing event that raised many questions regarding whether it was the right move. However, according to the founder, there are only right decisions or no decisions at all. Looking back, Waze is certainly worth more now than it was 11 years ago, but it is impossible to know if it would have reached this level of success without the acquisition.
The key to making a successful decision in selling a company is to focus on building a great company first. It’s not about actively selling your company, but rather someone making you an offer. To receive a good offer, you must have multiple options for your company’s future, such as continuing to run it, raising capital, or becoming profitable. By striving for greatness, you increase the likelihood of receiving a favorable offer.
When evaluating offers, it is important to consider whether it will be a life-changing event for both you and your team. The well-being of your team should be a top priority and can influence your decision. Additionally, consider if this opportunity is once in a lifetime for you, or if you believe there will be more journeys ahead. Ultimately, determining if you like the day after the deal is crucial as it marks the beginning of a new chapter in your career.
Negotiation plays a significant role in the process, especially in ensuring you receive the best deal possible. Having alternatives is key to saying no to unfavorable offers and creating leverage in negotiations. The goal is to create value and attract more offers, even from the same acquirer. Maintaining a clear head and considering emotional factors is essential during this time, as the decision-making process can be emotionally draining.
The emotional roller coaster of selling a company can be intense, as it involves reflecting on past successes, the impact on your team and loved ones, and the uncertainty of the future. Making a quick decision under pressure can be challenging, but setting clear criteria can guide you in the right direction. The aftermath of selling a company marks the beginning of a new journey, as seen by the founder who continued to build additional startups as part of his entrepreneurship journey.
In conclusion, selling a company involves a complex decision-making process that requires careful consideration of various factors, including the impact on you, your team, and the overall future of the company. By focusing on building a great company and evaluating offers based on set criteria, entrepreneurs can navigate through the emotional roller coaster of an M&A transaction and confidently move forward with the decision to sell their company.
