How to approach selling of bootstrapped company?
I cofounded a company (have 40%) but I’d like to sell my share — how would you approach this? Asking around, are there websites that help with that?
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I cofounded a company (have 40%) but I’d like to sell my share — how would you approach this? Asking around, are there websites that help with that?
Hi Pawel, it depends on how your business is structured and what role you have in the company. Normally, first option is given to other co-founder(s), if they want to buy your 40% shares. Secondly, I am sure the co-founder wants to make sure someone with the same skills is replacing you. Also, there has to be a good chemistry between the 60% owner(s) and new 40% buyer.
It’s a German limited liability company with just joint ownership (the other founder is CEO). Thank you for the insight, I don’t think they will want to buy my share that much, as an alternative I can step down as a “cofounder” and remain as a shareholder because that is the primary contract we have.
Yes, that is one option. Or, sell the entire company.
That would be optimal although it won’t be easy because it’s an early stage company and doesn’t have much revenue if any 😁
Another option to think of is to find another partner to buy out your cofounder. Normally if it works only if you are trying to sell your shares due to issues with the other partners. Even if this does not result in a successful transaction, it increases the chance and price of your cofounder buying you out.
If you are not involved in the business, can it still run in the same capacity?
I managed to sell my share of the company for a small amount of money just to get rid of it. Covered lawyer and notary fee with that and was left with a small "extra" but I wouldn't call it an exit LOL 🤣
The majority of startups end with no return. Even if your sale price was not exactly what you hoped when you started, you ahead of the majority. Now onward to better and bigger things!