In this episode of the Startup Therapy Podcast, Ryan Rutan and Startups.com founder Will Schroter discuss the unrealistic expectations that many startup founders have when it comes to selling their business. They detail the common pitfalls and misconceptions about startup valuation, the differences between raising capital and selling, the realities of private equity, and the dangers of deferred compensation. With insights from their own experiences of buying and selling companies, Ryan and Will provide a candid look at how to navigate the tricky world of startup acquisitions and set more realistic expectations for exit strategies.
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What to listen for 00:00 Introduction to Startup Acquisitions
00:16 Realistic Expectations in Business Sales
01:09 Understanding the Acquisition Process
01:37 Our Acquisition Experience
02:29 Challenges in Closing Deals
04:31 The Importance of Direct Communication
07:08 The White Knight Fallacy
13:07 Investor Expectations vs. Reality
20:35 The Figma Acquisition: A Case Study
21:12 Understanding Market Leadership and Valuation
21:44 The Reality of Acquisition Multiples
24:53 The Spectrum of Potential Buyers
26:07 Private Equity: The Predatory Buyer
28:32 The Harsh Truths of Selling a Startup
32:53 Cash vs. Deferred Compensation
39:15 Managing Expectations in Startup Exits

Wil Schroter

Ryan Rutan

What's my Startup Worth in an Acquisition?

In this episode of the Startup Therapy Podcast, Ryan Rutan and Startups.com founder Will Schroter discuss the unrealistic expectations that many startup founders have when it comes to selling their business. They detail the common pitfalls and misconceptions about startup valuation, the differences between raising capital and selling, the realities of private equity, and the [&hellip;]

Startup Therapy Episode #268

What's my Startup Worth in an Acquisition?