
Should You Sell Your Company? - paul
http://bhorowitz.com/2011/01/19/should-you-sell-your-company/
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rokhayakebe
I think the most difficult part after selling your company is walking away
with loads of money and still have some employees not have much.

I fundamentally believe that companies should be created to bring like minded
people together and solve problems they find interesting. Along with that
founders should make it a responsibility to create wealth for all employees.
Imagine what it would mean, when you joined a company to be 100% sure it will
pay off your mortgage in 5 years.

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coffeemug
_Imagine what it would mean, when you joined a company to be 100% sure it will
pay off your mortgage in 5 years._

Unfortunately in a reasonably efficient market that's fundamentally
impossible, in the same way as perpetual motion machines are impossible. The
reason why employees get equity in the first place is because they undertake
risk - opportunity cost because of lower salary, lack of job security, etc. If
employees knew that the startup will pay off their mortgage with 100%
certainty, everyone else would know too. That means the startup's valuation
would skyrocket, cheap capital would become trivially obtainable, and all of
the risk associated with joining a company would go away. This is essentially
exactly equivalent to joining a large, stable company today.

It sounds nice, but unfortunately the economics don't work out.

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dw0rm
"One of the most difficult decisions that a CEO ever makes is whether or not
to sell her company." — why "her company", is it about female CEO?

