There comes a time when just about every reasonably successful
startup gets an exit opportunity. For founders, these moments are
triumphant. You've dedicated years of your life to building
something, and now somebody wants to pay you a lot of money for it.
That's not only rewarding, it's also validating.
Trouble is, an offer is just the first step in an exit process.
Selling a company takes time and effort, and entrepreneurs often
can't spare either of those.
Here are four steps to take after a buyer comes knocking —
but before you begin serious talks.
1. Get a Letter of Intent. Before you spend
time working on a potential deal you need to confirm that the
buyer's interest is real. A written LOI, or term sheet, will
provide an early gut check, confirming the buyer is serious and
that the two sides aren't too far apart on price. It also shows
you're not in a hurry to sell, which might help you negotiate a
better price.
