subscribe: Posts | Comments

The Mechanics Of A Small Acquisition – How One Startup Navigated a Multi-Million Dollar Exit


Stypi is a YCombinator backed startup that was recently acquired by

Their story details the mechanics for how a small company can manage an acquisition. It provides lessons for startups going through the process for the first time.

Stypi is a real-time editor that multiple people can edit at the same time. It also supports several programming languages which makes it an especially cool collaborative tool.

Jason Chen is one of the founders who now works at on the Stypi project. His story mostly relates to acquisitions of $25 million or less.

Here are his five insights into the courtship and the eventual exit:

First Contact. That first contact is like meeting someone from the opposite sex. Intentions are confusing but the prospects are enticing. First forays are usually from a founder or the corporate development department of a larger company. These people usually act on behalf of an interested internal team. Get comfortable with this person as this is the individual who will set up and facilitate your meetings. This person is also the one you eventually haggle with over terms.

Further, be prepared for a long courtship. It can cost a lot of money to go through a deal and in the end there may be nothing to show for it. Don’t believe the finish line is just yards away. If you get rejected, then it will hurt all the more.

Courtship. A series of meetings will take place. Mutual NDAs are part of the ritual with larger companies. Decisions to go forward are made quickly after each meeting. Remember, rejection can go both ways. Chen said they decided to end the relationship early with more than half of interested potential acquirers. Meetings move fast when things are going well. Priority for acquisition meetings are reasonably high.

Term Sheet. The relationship is not exclusive. Hopefully you are lucky enough to be pursuing several. Each company will have its own way for managing the term sheet process. How long this takes comes down to due diligence. It’s not unreasonable to ask for timelimes so expectations can be set.

One you get a term sheet, it’s time to celebrate such an incredible accomplishment. Then it is time to get a lawyer who negotiates the key terms. The lawyer will explain it all and help you decide how hard to push for more favorable terms.

Due Diligence and Closing. When the term sheet is signed, it’s time to start acting like two companies that have decided to join together.  The terms sheet requires you to reject any other outstanding offers for a period of 45 days. There will be reviews of any document you ever signed. Anyone can back out at any time but the deal is usually a go unless you are hiding something like a lawsuit or stealing code.

A lot of time goes into signing forms and tracking people down for signatures. It’s like any transaction. There can be a lot of last-minute scurrying.

Exit. This is up to you.  Some have giant parties while others take time off and buy sports cars. Chen says For Stypi, life has not changed very much. They went straight to work the day after closing. For them, Stypi still has a long way to go before they can say they have achieved what they envisioned.

Article source:

Leave a Reply

Your email address will not be published. Required fields are marked *


− 7 = one

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


When you discover you've some ugly, scar like marks to the thighs, your breasts, or sometimes from the stomach, you will need realize lots of people to burn How To Get Rid Of Stretch Marks Fast these marks saving physique from creating ever again of parents. As well as one of the numerous stretchmark lotions which are usually within the market and Stretch Marks Cream you'll utilizing eradicate and quit Stretch Mark Cream new marks Stretch Marks Cream from forming.

1. Vitamin E

Vitamin E lotion will ?Stretch Marks Cream allow help your skin softer and healthier, nevertheless it planning to dispose of or avoid the ugly marks you How To Get Rid Of Stretch Marks Fast could completely. Idleness and definitely will keeping your skin good and healthy, though it is not the cure you want. Actually a thing that continues discusses great deal and some believe that it is any cure, however it won't Stretch Mark Removal be.

2. Cocoa Stretch Mark Removal Cream Butter

Another How To Get Rid Of Stretch Marks the most named stretch mark lotions since you can try is cocoa How To Get Rid Of Stretch Marks butter. Some women affirm cocoa butter Stretch Mark Removal Cream and it's used to Best Stretch Mark Cream perform per many, however, it just isn't going to do what will you expect to see it to perform. Is'nt solution for these particular ugly marks, although is great for your skin and another you may need use.

3. Real stretchmark how do you get rid of stretch marks lotions

A real lotion which would work most likely be 100% natural and will certainly outcomes may be after. Will probably be alleged to enable you to the utter discomfort Stretch Marks Removal Stretch Mark Cream you are usually after and you can now How To Get Rid Of Stretch Marks not anymore should having How To Get Rid Of Stretch Marks Fast any ugly how do you get rid of stretch marks marks while having breasts, your thighs, or perhaps your stomach. A Best Stretch Mark Cream lotion designed Stretch Mark Cream specifically for this will not only limit the current marks, and often will prevent any future marks as well as.

enlever les vergetures crème anti vergeture grossesse