{"id":1697,"date":"2013-10-16T16:17:39","date_gmt":"2013-10-16T20:17:39","guid":{"rendered":"https:\/\/www.duck9.com\/?p=1697"},"modified":"2013-10-16T16:18:54","modified_gmt":"2013-10-16T20:18:54","slug":"exit-is-a-euphemism-for-selling-your-startup","status":"publish","type":"post","link":"https:\/\/www.duck9.com\/blog\/exit-is-a-euphemism-for-selling-your-startup\/","title":{"rendered":"Exit is a Euphemism for Selling Your Startup"},"content":{"rendered":"<div>\n<div><span style=\"-webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875); -webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-text-size-adjust: auto; \">By Larry Chiang&nbsp;<\/span><\/div>\n<div><span style=\"-webkit-text-size-adjust: auto; background-color: rgba(255, 255, 255, 0);\"><font><b><br \/><\/b><\/font><\/span><\/div>\n<div><span style=\"-webkit-text-size-adjust: auto; background-color: rgba(255, 255, 255, 0);\"><font><b>SUCCESSFUL EXITS: WHAT TO PREP, WHAT TO WATCH OUT FOR &amp; HOW THINGS MIGHT TURN OUT<\/b><br \/><\/font><br \/><font><b>You&#8217;ve built up and built out your startup&#8211; now some douche-nugget wants to buy you.<\/b>&nbsp;<\/font><\/span><\/div>\n<div><span style=\"-webkit-text-size-adjust: auto; background-color: rgba(255, 255, 255, 0);\"><font><br \/><\/font><\/span><\/div>\n<div><span style=\"-webkit-text-size-adjust: auto; background-color: rgba(255, 255, 255, 0);\"><font>If you&#8217;ve never sold a startup, you&#8217;re at risk of getting taken to the cleaners (literally). Navigating the sale is not easy.&nbsp;<\/font><\/span><\/div>\n<div><span style=\"-webkit-text-size-adjust: auto; background-color: rgba(255, 255, 255, 0);\"><font><br \/>Topics include:<\/p>\n<ul>\n<li>Earn outs \u2014 Know to swap your shih tzu for someone else&#8217;s mutt.<\/li>\n<li>Deal insurance \u2014 Figure out who you&#8217;re paying real world insurance to.<\/li>\n<li>IP \u2014 Do what\u2019s needed to minimize exposure in case of __<\/li>\n<li>Earnest money \u2014 Negotiate and confront .<\/li>\n<li>Due Dil \u2014 A bird in the hand and your pants in a bush.<\/li>\n<li>Negotiating a No Shop \u2014 Manage the process or have them own you.<\/li>\n<li>Legal \u2014 Minimize tax and risk post sale.<\/li>\n<li>Deal Structure \u2014 Cash up front and the mirages that distort.<\/li>\n<li>Screwing co-founders \u2014 Employee #3 to 30 have it rough. Do u reward em or accelerate em?<\/li>\n<\/ul>\n<p><\/font><\/span>Specifically, structure the insurance and the earnest money as per Quora (LINK)<\/p>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">ENGR145&#8217;s Anchor Concept: Lemonade and Gua Gua Guacamole&nbsp;<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">It moves you to the right on the entrepreneur bell curve&nbsp;<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/www.youtube.com\/watch?v=eudADPfTWiE&amp;feature=youtube_gdata_player\"><embed width='425' height='344' allowfullscreen='true' allowscriptaccess='always' type='application\/x-shockwave-flash' src='https:\/\/www.youtube.com\/v\/eudADPfTWiE&#038;hl=en&#038;fs=1' \/><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/www.youtube.com\/watch?v=n5jB310egEI&amp;feature=youtube_gdata_player\"><embed width='425' height='344' allowfullscreen='true' allowscriptaccess='always' type='application\/x-shockwave-flash' src='https:\/\/www.youtube.com\/v\/n5jB310egEI&#038;hl=en&#038;fs=1' \/><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/www.youtube.com\/watch?v=BMyLcDaWazU&amp;feature=youtube_gdata_player\"><embed width='425' height='344' allowfullscreen='true' allowscriptaccess='always' type='application\/x-shockwave-flash' src='https:\/\/www.youtube.com\/v\/BMyLcDaWazU&#038;hl=en&#038;fs=1' \/><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">CEO of Duck9<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">Stanford University Entrepreneur in Residence, Emeritus<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">Duck9 = &#8220;Deep Underground Credit Knowledge&#8221; 9<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">125 University Avenue\/ 100<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">Palo Alto CA 94301<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/www.duck9.com\/ass\"><a href=\"https:\/\/www.duck9.com\/ass\" >https:\/\/www.duck9.com\/ass<\/a><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">650-566-9600<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">650-566-9696 (direct)<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">650-283-8008 (cell)<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">****************<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">Editor of the BusinessWeek Channel &#8220;What They Don&#8217;t Teach at Business School&#8221;<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog\"><a href=\"https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog\" >https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog<\/a><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">CNN Video Channel: <a href=\"https:\/\/ireport.cnn.com\/people\/larrychiang\"><a href=\"https:\/\/ireport.cnn.com\/people\/larrychiang\" >https:\/\/ireport.cnn.com\/people\/larrychiang<\/a><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">Read my last 10 tweets at <a href=\"https:\/\/www.Twitter.com\/LarryChiang\"><a href=\"https:\/\/www.Twitter.com\/LarryChiang\" >https:\/\/www.Twitter.com\/LarryChiang<\/a><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">Author, NY Times Bestseller<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog\/?s=Ny+times+bestseller\"><a href=\"https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog\/?s=Ny+times+bestseller\" >https:\/\/whattheydontteachyouatstanfordbusinessschool.com\/blog\/?s=Ny+times+bestseller<\/a><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">&#8220;What They Will NEVER Teach You at Stanford Business School&#8221; comes out 11-11-14<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/www.fastcompany.com\/embed\/c0d4562ea2049\"><a href=\"https:\/\/www.fastcompany.com\/embed\/c0d4562ea2049\" >https:\/\/www.fastcompany.com\/embed\/c0d4562ea2049<\/a><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">52 Cards. Two Jokers. What They DO Teach You at Stanford Engineering<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/www.youtube.com\/watch?v=vDBY0GkI3-g&amp;feature=youtube_gdata_player\"><embed width='425' height='344' allowfullscreen='true' allowscriptaccess='always' type='application\/x-shockwave-flash' src='https:\/\/www.youtube.com\/v\/vDBY0GkI3-g&#038;hl=en&#038;fs=1' \/><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">Emergency swings and cutting deals as an 9 year old<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/www.youtube.com\/watch?v=OFGY7v9C4G0&amp;feature=youtube_gdata_player\"><embed width='425' height='344' allowfullscreen='true' allowscriptaccess='always' type='application\/x-shockwave-flash' src='https:\/\/www.youtube.com\/v\/OFGY7v9C4G0&#038;hl=en&#038;fs=1' \/><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">##########<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">Duck9 is part of UCMS Inc.<\/div>\n<div style=\"-webkit-text-size-adjust: auto; \"><a href=\"https:\/\/www.ucms.com\"><a href=\"https:\/\/www.ucms.com\" >https:\/\/www.ucms.com<\/a><\/a><\/div>\n<div style=\"-webkit-text-size-adjust: auto; \">630-705-5555<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Larry Chiang&nbsp; SUCCESSFUL EXITS: WHAT TO PREP, WHAT TO WATCH OUT FOR &amp; HOW THINGS MIGHT TURN OUTYou&#8217;ve built up and built out your startup&#8211; now some douche-nugget wants to buy you.&nbsp; If you&#8217;ve never sold a startup, you&#8217;re at risk of getting taken to the cleaners (literally). Navigating the sale is not easy.&nbsp; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1697","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/1697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/comments?post=1697"}],"version-history":[{"count":0,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/1697\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/media?parent=1697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/categories?post=1697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/tags?post=1697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}