This is a short advisory segment in which a speaker recommends preparing a startup for acquisition at least 12 months ahead. Key recommendations: consolidate company documentation and accounts, clean and clearly track financials (profit & loss), and aggressively scale revenue during the year before a sale to improve valuation by showing upward trajectory rather than decline.
You've successfully been acquired, what's the top piece of advice you give them? So the first thing I would say is start like 12 months before you actually want to sell. Start getting all of your documentation, all of your accounts, cleaning everything up at least 12 months before. So start like putting everything, segregating it all into like that container of your company. Start cleaning your financials up and making it really clear, like really tracking what your profit and loss is, where your money's been spent. Then I think over that 12 months, really try and maximize and push your business to scale the revenue as much as you can. Because how much it scales in that 12 months, even if it grows like, you know, 20, 30, 40%, like that can massively increase your valuation, especially because people will see it's on an upward trajectory. Whereas if you just get burned out, decide, you know what, I'm just going to sell, it's probably going to be on a downward trajectory.