FAQ

Some of the more common questions about finding acquirers…

That really depends. If your business is growing, and not relying on infusions of new (equity) capital to do so, keep growing. If growth has stalled or it’s becoming clear there isn’t a scalable business model on the horizon, it might be the right time to exit.

We will be happy to give you our honest assessment.

Under certain circumstances, we can keep the company name confidential. These circumstances include critical strategic partners, contracts, or fundraising efforts that could be affected by listing your company name.

When not listing a name, we expect a tradeoff in interest levels. If an acquirer in unable to immediately go to your website and assess a fit on-the-spot, they are less likely to engage further.

Before there is any outreach, Basis State provides you with a dynamic valuation model that seeks to inform how any prospective acquirer will be calculating your value. The model also informs what would be a far market price for the asset.

How much you ultimately decide ask for the asset will be driven by other factors such as investor requirements, timeline, and your alternatives to exiting.

Although the market will eventually determine the real value, we always ask that you let us guide the market with some expectation of value in our outreach. We usually refer to this as our “estimated value” to leave flexibility up or down depending on market interest. We have found that not presenting any expectation of value is a deterrent to initial interest.

Some acquirers will, some won’t. This is always a point of negotiation for any exit…and oftentimes the most complex one.

For our outreach, we ask founders to promise some sort of minimal transition assistance. This is the bare minimum it would take to usher the tech into new hands and field any commercialization questions that come up initially. It usually part-time (expressed as maximum X hours weekly) for 2-3 months.

We like to think our project relieves a significant portion of the burden than an exit process can bring. That said, we do need help understanding the company, pulling together facts and figures for potential acquirers. Further, once we have vetted an acquirer and answered their initial questions, you will need to take them a level deeper by providing a demo of your software and answering detailed questions.

In the first month, you can expect a 1.5 hour onboarding call at the start of the project, and 3 subsequent 1-hour calls to review our positioning framework, go-to-market-materials, and our valuation models. In subsequent months, during outreach, we will ask for much less of your time.

Questions?

Ask us, or schedule a consultation.