There's a company that wants to buy us, but I might want to hand over the keys to someone else. Do I reach out to see if they are interested?

We have a company interested in acquiring us. It's a good offer but I'd rather sell to another company. Should I reach out to them?

-Founder

Dear Founder,

Having inbound interest is encouraging, but let’s step back. An acquisition offer doesn't create an obligation to sell.

If you’re confident in your direction, satisfied with your progress and operating in a healthy market, selling might not be the right move. Remember what you’re trying to accomplish. Your goal is to create a big and enduring company.

It’s great that you’ve created something valuable enough to attract buyers. If you believe in its continued growth potential, don’t feel pressured to exit. If things go according to plan, your company will keep getting better. Every year it should become stronger and more valuable.

Where is your company on the path to becoming an outperformer?

• If you’re confident about your prospects for growth, don’t be so quick to contemplate anyone buying you right now. You don’t want to give up too early.
• If you’re not at breakout status, then it’s necessary to determine what you need to do to get there.
• If you’ve given this appropriate consideration and you’ve decided that selling is the right move, evaluate the current offer carefully before seeking out others:

-Will it properly compensate you, your employees and your investors for what you’ve built?

-Can it advance your mission and product vision?

-Does it expand your company’s potential?

-Is this merely an acquihire, or is the buyer invested in growing your product?

If you are genuinely interested in selling, then yes, explore other options—assuming you’re not under exclusivity. Multiple interested parties typically lead to better outcomes, both in terms of valuation and finding the right strategic fit. Like selling a house, more offers generally yield better results.

Consider bringing in experienced counsel or investment bankers to optimize the process. Your board should also be involved and can provide valuable guidance.

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