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Startup Acquisition Stories

Startup Acquisition Stories Podcast with Wil Schroter, Founder of Startups.com

Feb 27, 2024
Venture-backed startups often fail, but M&A can salvage them. Wil Schroter shares his experience of buying failing startups and making 50 times ROI. Topics include knowing when to sell, restructuring a startup for desirability, and the challenges of acquiring distressed companies.
01:01:17

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Founders can renegotiate valuation with investors for mutual benefit.
  • Choosing to exit a failing startup requires open communication with investors.

Deep dives

Renegotiating Valuation and Ownership with Investors

In the podcast episode, the discussion revolved around the option for founders to renegotiate their valuation and ownership with investors when their venture-backed startup is not meeting expectations. The example of a stock sale versus an asset sale was highlighted, emphasizing the tax benefits for the founder in a stock sale. By initiating candid conversations with investors about the current state of the business and aligning on new terms, founders like Dan Martell from Clarity.fm demonstrated proactive strategies to secure a mutually beneficial outcome.

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