

Missing from PG's startup essays: acquisition negotiations strategy/advice? - os111

I'd be interested in hearing advice/stories from anybody that has negotiated an acquisition. Specifically, the acquisition of a tiny startup (1-5 people) by a huge company. Thanks.
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pg
Funny you noticed that. There is one, but it's unpublished. I give copies to
individual YC startups when the time comes.

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zach
That's great. I love the idea that there's a secret Paul Graham essay, one
revealed only to initiates facing the ultimate test. A nice poetic touch, like
the black t-shirts.

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breck
Me too. "When the time comes". Is there a ceremony?

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zach
You have to snatch a pebble from Dexter's hand.

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wastedbrains
This isn't a huge company acquiring, but we sold our first start up and are
working on our second these stories might help.

Part 1: Why sell a profitable site:
[http://blog.pretheory.com/arch/2007/08/why_sell_a_profitable...](http://blog.pretheory.com/arch/2007/08/why_sell_a_profitable_website.php)

Part 2: Closing the deal Lessons selling a website:
[http://blog.pretheory.com/arch/2007/08/closing_the_deal_sell...](http://blog.pretheory.com/arch/2007/08/closing_the_deal_selling_a_web_1.php)

Hope it helps, are you currently in negotiations? Verbal Agreement?
Handshakes?

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os111
thanks...not currently in negotiations but i may be in the near future.

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os111
Some more details on what I'd like to hear:

\- Which party approached the other

\- Who throws out the first offer

\- How is value determined in the absence of any outside investments

\- What are the attorney fees

\- Negotiating favorable terms for post-acquisition work at the acquiring
company

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fleaflicker
Re: first offer:

 _Ask pg.news.yc: How do acquisition prices get settled?_

<http://news.ycombinator.com/item?id=45337>

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fleaflicker
here's one:

<http://news.ycombinator.com/item?id=40584>

