

Ask YC: startup valuation - juptonrm

We are a small startup that has recently been approached by a large media company that has expressed a strong desire to invest in our company or potentially acquire us outright. We don't have much experiencing valuing companies beyond raising an angel round of financing and this investment is much more strategic for this media company (so our value is significantly increased in their ecosystem). Does anyone have any specific advice on how best to go about figuring out such a valuation? Or anyone to contact that would be able to help achieve the best valuation possible?
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car
I'd suggest finding and hiring a lawyer who has done M&A before, since he/she
can aid in negotiating your valuation.

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juptonrm
Does anyone have any suggestions for good lawyers with such expertise? We're
located in SF.

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gscott
A suggestion I heard was to get offers from other companies for yours. If you
can get a bidding war going on then you are in good shape otherwise you either
have to take what they give you or chance it on your own.

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dfranke
There's no objective answer to that. Every transaction is unique, so there's
no concept of a market price. It's just pure negotiation, so read up on
negotiation.

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juptonrm
any good suggestions on negotiation reading?

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dfranke
I've heard a few people recommend "Getting To Yes", but I haven't read it
myself.

