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.
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