| ||Ask HN: How to handle acquisition offer from a competitor?|
82 points by forcer on Feb 23, 2012 | hide | past | web | favorite | 25 comments |
|Recently we got an acquisition offer from a company that is a potential competitor. They are strong in a different segment of the market and we feel strongly that it would be very hard for them to get our part of the market without our acquisition.|
We are not prepared to sell if the offer is under certain multiple but they dont want to disclose the bid unless we provide them with detailed information. We are worried that its just a fishing expedition to get more details how our business operates. They supplied NDA to sign which should protect us. In theory, but in practice I am not that convinced.
The sale price would be in 7 figures. I am toying with an idea to get from them like %0.5 sale price nonrefundable deposit and disclosing the minimum multiple they need to offer.
I am aware that it may put them off, but we are not looking to sell and just worried about disclosing information if it does not lead anywhere.
Has it ever been done? Is it a mad idea to ask for this? Am I better off just giving them information and proactively trying to contact other potential buyers to drive up a price instead?
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