Dear SaaStr: Is it a Red Flag if The CEO is Only Interested in Selling the Company?
It is. Or at least — it’s a Yellow Flag.
The company will never be great if the CEO is thinking this way.
There are so many start-ups, so many products, so much competition. You can build something to sell, and it can work. IF you have something very unique and differentiated.
But even in that case … the CEO will probably sell just when it’s getting good. And then, the employees likely won’t make any real money, and just as the product is getting interesting, the company will lose its independence.
Still.
This isn’t a criticism, per se. I sold twice. I get it. This stuff is hard. Selling for a good price is a logical choice. And I think many founders have gone through this phase … and come out of it. Kicked themselves in the arse and then gone bigger. So it’s more a Yellow Flag to me than a Red Flag, on its own.
But if you feel like the CEO is obsessing with selling, I’d be looking for a better job.
