Hello,
I'm CEO of high tech company in California. Recently one of our
competitors directly requesting information on buying my firm. I am
not sure what to do or better say; do not know how I should price my
firm, my technology, my intellectual property. I have no idea how to
negotiate on such things. Should I be asking for % in their firm or
should I be asking for money and executive position? Alternatively,
what should I be asking?
How should I behave during negotiation? What questions I should NOT be
answering if they ask me. I think would sell everything for five
million dollars. They are not public company and my technology would
be main technology for them. They also want my developers.
Industry is 9.2 billion dollars per year. A company who is interested
rated in top ten.
Therefore, question is how to sell company.

Hi,

I have hesitated quite some time before I took on this question. A
very sound answer needs probably more than a US$5 price tag, and a
wide range of experts, like some of the commentors already indicated.
Your information is rather thin, and to be honest, I would not discuss
the full details on a public forum like this.
I'm partly in the same situation, as my company might get some VC in,
so we have been very busy in preparing ourselves, looking into the
value of our company. I'm happy to share some of my insights.

First, it is very important to know what you want yourself. Apart from
the money you might get out of it, do you want to leave after the
deal? Do you want to stay in the company? Do you want to stay in a
management function, or still as a participant in your company, or (as
you say) participate in the buying company?
Second, you have to find out what they want, as good as possible. You
obvious know the market and their position, and you give already an
indication why your company is worthwhile for them. You should also
ask them, talk, chat. You do not have to make a decision now, you
first should get the information together.

Third. It makes sense to think about the value of your company, but
remember that it is all a matter of negotiations. You have an idea
about what you want, they have an idea about what your company is
worth to them. In the end you will have to put a price tag on all the
assets (both tangible and intangible) and bring both positions
together.
Fourth: do not get too exited. You should always keep an option open
where you say: sorry, but I'm not going to do that.

Well, hope it helps, have to take out my VC out for lunch to sound him
out.

Good luck,

Fons

You did not point me to any recourse online. You start talking about
$5 tag instead of answering my question. In addition, I do not care
who do you eat your lunch, dinner and breakfast with. If you cannot
get to the point, do not respond.
Thank you.

At the risk of being a bit direct, this is a serious question
deserving a very, very serious professional advice. Not only are there
obvious legal questions in terms of disclosure, confidentiality,
non-compete provisions, residual ownership/creditor structures,
employment, securitization and a host of other issues, but the tax
questions alone can be overwhelmingly complex with outrageously
expensive implications if not done properly.

Best of luck capitalizing on your hard work.
weisstho-ga

Hello onlineadvertisingpro-ga,

Looks like you need the services of an experienced broker. Try the
following link to get an idea of what such a broker should do for you:

http://www.gottesman-company.com/about_us.asp

Best of luck with your task

Thanks,

These links take you to the various aspects to be considered when
selling a company.

( http://www.entrepreneur.com/Your_Business/YB_SegArticle/0,4621,292410-----,00.html
)

( http://entrepreneurs.about.com/cs/businessvaluation/ )

( http://www.newcap.com/Pub2.htm )

( http://www.cpa2biz.com/ResourceCenters/Investment+Advisory+Services/Best+Practices+for+Maximizing+Your+Firms+Value.htm
)

( http://www.shoreline.com/Articles_for_Business_Owners/Building_Business_Value_Now_fo/building_business_value_now_fo.html
)

( http://strategis.ic.gc.ca/SSG/be00178e.html )


Regards

googly ga