Growth February 21, 2020

How to sell a startup to another company?

Folokym @5icp84wpab

I've developed a few apps/software in the past years, generating a few $k/mo passive income.

I won't have time to properly develop one of the apps I developed (a finished product, ready to go on market), and I'd like to sell it to a bigger company, specialized in this tech.

Have you ever done this before ?

  • How do you sell an early startup which isn't a 'company', but just a product developed as a sole trader? Obviously you cannot sell 'the company' because there isn't one. Is it considered as a service? Transfer of intellectual property? Something else?

  • Where do you search your potential acquirers? Some well known websites? Other ideas?

  • Articles about how to sell a very early startup welcome!

    1. 1

      @jayfk Would you share some thoughts about how some of your previous projects/tools got acquired? (You are probably independent self-employed like me, and I can imagine you did not create a new 'company' for each project you sold. How did you sell those projects?)

      1. 1

        For the first project I've sold, I got contacted by the acquiring company directly. We worked out an asset deal (this is what you have to do if you don't sell a company but an asset => your project).

        The second project was sold through FE International. They did a tremendous job on all the paperwork and did a lot of hand holding during the deal. They are truly awesome and I can't recommend them enough.

  1. 1

    I am currently looking for investment opportunities! Shoot me an email with your offer!

  2. 1

    I am interested with this. Could you please PM me on skype( sachin.g.kulkarni ) or send me an email ( [email protected]) about the product.

    We can discuss further.

  3. 1

    If the product generates $10k/year or more, you should look into FE International - https://feinternational.com/ - they broker deals like that. You might have to spin up an LLC in order to sell the "company" but you can do that with Stripe Atlas in like an hour.

    (note: I am not paid by, employed by, or otherwise associated with FE International. I just saw them give a brief talk at MicroConf a couple years ago)

  4. 1

    If clearly intended to sell it, you can not get a good price. The better way is to create a great product then the buyer will find you.