Slashdot Mirror
Finding Someone To Manage Selling a Software Company?
rrrrw22 writes "My company has spent the last year developing a framework for creating games on Facebook, Myspace, and Twitter. While we had originally planned to release the product to the public and take a percentage of the revenue, we have realized that we can make more money by selling the application to a funded company entering the social gaming space. Our problem is we don't have many other contacts in the social gaming space and would like to find someone to manage selling the company for us (in exchange for a percentage of the sale.) Where can we go about finding someone with the skills and contacts to sell a product like this? What experiences have others had trying to sell a company that we can learn from?"
You didn't tell why you came to conclusion that you would make more money that way, and it seems you haven't tested the other possibility either. Why not? If it doesn't work, then sell it. It also gives more value for the platform.
Translated to truth from euphemism.
We started a company to try to get rich off the back of other websites. After investing all of our personal money we have realized that we will never get it back and we're tired of working 80+ hours a week for nothing and we know we will never make a dime.
We're looking for a sucker to do all the work to try to sell our craptastic software "company" that has never sold a single line of code and attempt to get some of our money back.
When you product is any good, buyers will come knocking. If it's not, then trying to find someone is a waste of time, keep on it until you have a good revenue and a decent customer base. Web 2.0 and .com were yesterday.
My company has spent the last year developing a framework for creating games on Facebook, Myspace, and Twitter. While we had originally planned to release the product to the public and take a percent of the revenue, we have realized that we can make more money by selling the application to a funded company entering the social gaming space.
Sell it to the spammers, marketing research firms, and anyone without a conscience because the only way someone's paying for your product is if they think they'll realize a return on their investment. And right now, advertisements or leeching away people's personal data is the only way to make money in the "social gaming space". People without a conscience also tend to be cheap-asses, so I wouldn't expect to get much.
Also, for the above-mentioned economic reasons, I don't use facebook or myspace applications and most of the "personal" data on my profiles are outright lies or fabrications.
#fuckbeta #iamslashdot #dicemustdie
Release it and prove that users like what you have. Otherwise, I don't even know that your great platform/software does what you are saying it does. You want to make money out of your start-up but don't want to do the initial hard labor... it doesn't work that way.
If you have to turn to "Ask Slashdot" for what's likely THE most important decision your business could make (sale), then you really have no business farming this out to someone you've just met.
Believe it or not, Slashdot is a rather poor place for high-level business strategy (I know! I thought slashdot knew everything!). I don't know much about selling a company, but I do know a little about risk. If you really don't have the skills internally to do this yourself, there's an ENORMOUS risk of looking outside the company to find someone with these skills. If you don't have the skills to do this yourself, how are you going to know who's qualified to make such a big decision? How are you going to know if they're doing a good job? Put into simple terms, what's your expected gain in value from selling the company vs. selling your product? Now think about that in terms of hiring the wrong sales guy.
The thing is, you can always sell the company later. If you've demonstrated a viable sales strategy, your company is going to be that much more easy to sell, and worth more money.
AccountKiller
To actually get the deal going, start talking to people at companies you think might be good acquirers. Start with polite email, or better yet, get introduced through someone you know who respects your work. Good people to talk to would be founders, C-level people, or investors at the potential acquirer. You will probably get better milage from asking a question, like "do you know anyone who would be interested in our assets" rather than going directly to the point of "you should buy our assets for $XX" If you can't do the deal without a broker, I'd suggest talking to business students at undergrad or MBA levels, potentially someone who's focusing on M&A. You've got to match the scale of the deal, and the size of the upside for a broker with the expectations of the broker. If you are going to get sold for just a few thousand, do it yourself. If we are talking hundres of thousands, there are people who work in the center of your local major metropolitan area who specialize in these things. Get introduced to those people through your lawyer, or through a lawyer you know.
How much revenue do they generate?
AH!
I agree - IP lawyers, especially those close to the industry you're in will be your best source for contacts and overall representation. I don't like to work with lawyers more than I have to, but in this case I think a high end lawyer will pay for him/herself in getting you the right price.
This isn't to to poster. Now that you've got the word out, you might find a buyer.
Everyone else: stop telling these people they can't do it, and are idiots for asking. They are smarter than you as they have got 50,000-60,000 people who are now aware of what they have. Also, no one has a freaking clue the first time you sell a company, and often after selling a few. Why? BECAUSE THERE ARE VERY FEW RULES. Just make sure you are getting paid in something that has real value and will continue to unitl your no-sell period ends. Having a lawyer is a give on deals like these.
-- $G