What’s the best way to decide to sell your company?

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Should You Sell Your Company? – Ben’s Blog

When analyzing whether or not you should sell your company, a good basic rule of thumb is: If a) You are very early on in a very large market AND b) You have a good chance of being number 1 in that market, then you should remain stand-alone.

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Should You Sell Your Company? – Ben’s Blog

The judgment that you have to make is a) is this market really much bigger (more than an order of magnitude) than has been exploited to date? b) Are we going to be number 1? If the answer to either a) or b) is no, then you should consider selling. If the answers to both are yes, then selling would literally mean selling yourself and your employees short.

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Should You Sell Your Company? – Ben’s Blog

A few keys on muting emotions: Get paid (a salary). Once the company starts to become a company rather than an idea then it makes sense to pay the CEO at market. Be clear with the company—One question that every start-up CEO gets from her employees is: “are you selling the company?” One way to avoid these traps is to describe the analysis in the prior section: if the company achieves product/market fit in a very large market and has an excellent… (read more)

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Reblog: Let Your Winners Run – AVC

When you have portfolio companies that are category creators, category leaders, who are well managed, and growing 50% per year or more and delivering 20-30% pre-tax margins (or more), and who have no existential threats to their market leadership, you might want to hang on to them for a bit.

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Reblog: Let Your Winners Run – AVC

But when and if we get to weigh in on the timing of the exit, my view is that you look to exit your weakest investments as soon as you can and you let your winners run as long as you can.

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Should You Sell Your Company? – Ben’s Blog

it is useful to think about technology acquisitions in 3 categories: Talent and/or Technology—when a company is acquired purely for its technology and or its people. These kinds of deals typically range between $5 and $50M. Product—when a company is acquired for its product, but not its business. The acquirer plans to sell the product roughly as it is, but will do so primarily with its own sales and marketing capability. These kinds of deals typi… (read more)