A complete walkthrough for first-time founders. Avoid costly mistakes, build the right team, and navigate the exit process with confidence.
First-time founders typically leave 20-40% of deal value on the table due to inexperience. You only get one shot at your first exit — this guide helps you get it right.
Understand the psychological journey of selling your company and prepare for the emotional rollercoaster
Assemble the right advisors: M&A lawyer, tax accountant, business broker or investment banker
Get finances audit-ready, clean up legal docs, document processes, and maximize value
Know what buyers will investigate and how to respond without killing the deal
Understand term sheets, valuation adjustments, earn-outs, and how to get the best deal
Final steps to closing, escrow, transition planning, and what happens after you sign
Consequence: Deal delays, lower valuation, or deals falling apart during DD
Solution: Start preparing 12-18 months before you plan to sell
Consequence: Leave $500K+ on the table, accept bad terms, miss red flags
Solution: Hire M&A lawyer and accountant who've done 10+ deals in your size range
Consequence: Walking away from good deals, negotiating poorly, alienating buyers
Solution: Get 3rd party valuation early, understand market comps, focus on total deal value
Consequence: Lose leverage, competitors learn your strategy, employees get spooked
Solution: Use NDAs, share info progressively, keep deal confidential until LOI
Consequence: Miserable transition period, customers/employees leave, earnout at risk
Solution: Interview the buyer as much as they interview you. Culture matters.
Consequence: Huge unexpected tax bills, poor asset vs stock sale structure
Solution: Consult tax advisor before accepting LOI. Structure matters enormously.
Here's what to expect from preparation through closing. Timeline assumes a $5-50M SaaS exit.
Don't go it alone. These professionals will more than pay for themselves.
When to hire: Before you talk to any buyers
Why you need them: Reviews LOI, negotiates purchase agreement, protects you from liability
When to hire: Before accepting LOI
Why you need them: Tax planning can save you hundreds of thousands. Stock vs asset sale matters.
When to hire: Optional, depends on size
Why you need them: Helps find buyers, manage process, negotiate. Worth it for deals $5M+
When to hire: After closing
Why you need them: Help you invest proceeds wisely and avoid lifestyle inflation
Selling your company is intensely emotional. Here's what to expect and how to cope:
You'll feel: Excitement mixed with uncertainty
Advice: It's okay to have mixed feelings. Talk to founders who've exited before.
You'll feel: Scrutinized, defensive, exhausted
Advice: Remember: tough questions don't mean they're backing out. It's normal process.
You'll feel: Panic, desperation, anger
Advice: Most deals hit bumps. Stay calm. Have your advisor handle emotional negotiations.
You'll feel: Relief, joy, but also emptiness
Advice: Totally normal to feel lost. Take time off before deciding what's next.