What are the pros and cons of selling a company?
Having a “good exit” is a special thing. You will make some money, perhaps even life-changing money. It will prove you can do it. It will Level You Up in the hierarchy of founders. You will have beaten the odds, and be a “winner”.
But as time goes by, you may see it all differently. You may see you only get so many at-bats. At least most of us only have so many. So many chances to build something, to do something great, to lead and be part of a great team.
You’ll see that when you sell, you are monetizing an at-bat … but also giving it up.
You may look back and see it as the right, great opportunity. Especially if the market changes on you. If you lose your competitive position. If you can’t raise enough capital. Those are good reasons to sell, for sure. If you sell early, you may even thank your lucky stars that the sale bailed you out.
- If you reach scale, if you reach critical mass.
- And if you’ve built something with a brand, with momentum, with net negative churn and happy customers.
- And you do that with a team you enjoy working with, that you think can keep up with the pace of change in the market.
Well, that’s one of the most special things there is.
Why would you want to sell it?
What would you do better with your time and energy?
If you aren’t sure … don’t sell.
The Box experience, not selling early-ish for $600m+: