SaaStr · 2014-06-17 · 4369d

Prioritize Dollars Over Prestige When Selling Your Company

When founders sell their companies, emotional attachment to the acquirer's brand often leads to suboptimal financial decisions. The article argues that maximizing purchase price should take precedence over joining prestigious companies, as the emotional satisfaction of selling to brand-name acquirers typically dissipates within 24 months post-acquisition.

3 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Acquirer Annual Acquisition Volume

100+companies

minimum

Number of great companies acquired annually by large tech acquirers

Market Cap Example

20$B

minimum

Waste Management Inc. market cap cited as example of large but non-prestige acquirer

Post-Acquisition Satisfaction Timeline

24-36months

typical retention period

Time until founder emotional satisfaction with acquirer prestige dissipates