Many entrepreneurs dream of selling their companies to a large acquirer; it’s one of the most exciting aspects of building a business from the ground up. I had previously built and sold 2 companies and was negotiating the sale of my third business to TimeWarner, the world’s largest media company. I learned a lot in the 6 month process. Several of my consulting clients have recently begun the acquisition process and it made me think of what we should do to best prepare for the journey. Read more
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A lot of people ask me what it was like to be VC backed by JPMorganChase Capital Partners, at the time the world's largest VC, to invest.
1) Should I get VC money?
2) How much should I go for?
3) What valuation is important and what should I try to retain in ownership?
4) Should I get VC, private equity, angel or other funding?
These are all important questions and when working with entrepreneurs, we spend a lot of time focusing on what the company's goals are so we can choose the best fit for the business and management's goals. I found this presentation which frames a lot of the issues succinctly, and although its a bit over the top with sex inuendos, the content is worthwhile.
I just had the opportunity last week to spend 3 days with many top entrepreneurs in Dallas, TX and the EO Texas Roundup event. It was inspiring to meet so many top notch leaders of diverse businesses. And all had the same theme – business is changing super fast.
My career in Internet media, games and sales has prepared my mind for constant turmoil of change and taught me how to adapt quickly without being "twitchy" or reactionary. This is a skill all businesses need today and the video game business has shown us what's at stake by just wishing things would stay the same. See this telling article about why game sales dropped 26% in April vs the previous month.
The point is here is a high tech and attractive business that still, despite the sexiness of its content, is run the way it was 20 years ago. It is totally reliant on retail. It has given basic lip service to the rapid pace of Internet development in social games and virtual goods. It is trying to embrace it without killing the golden retail goose. This game has been going on for the past 5 years with one eye shut although everyone knows the Internet is the IP generation and distribution platform that will reign. How can a bunch of smart folks still refuse to embrace the next stage business evolution? Please contribute your ideas – I'll have more on that next week! Have a great and profitable week.
Don't get me wrong. I'm not talking about TWSM (time wasting social media) but rather PSM (productive social media). The big must have in that category is LinkedIn. There are lots of ways to leverage your professional network and mine opportunities. I have a very large network of over 1,500 very carefully screened people. If I don't know you, then you are not on my LinkedIn. I am very strict with who qualifies to be in this close professional network and it has paid handsome dividends. When I ask my network for advice or resources, I usually get 10 or more very targeted and accurate suggestions. The list is long of great benefits of LinkedIn.
If you want some good tips, I suggest reading Guy Kawasaki's Ten Ways for Small Business to Use LinkedIn . I'm looking forward to meeting Guy this week as we are both speaking at the EO Global University in Southern California.
Remember, use PSM and dump the TWSM!