| I was the acquirer in a similar situation. (See http://blog.viglink.com/2010/08/02/viglink-acquires-driving-... ) A few thoughts: * Meeting them in person is 100% imperative. Go to dinner, spend time together, share a bottle of wine. It is important that you like them and vice-versa. If you don't, don't do the deal! * Inevitably as the deal progresses, something will come up, something with the potential to kill the deal. The personal relationship you built (or didn't) in the point above is what will pull you through (assuming that's what you want.) * Hire an attorney who gets the culture - someone who operates out of Silicon Valley and knows how these kinds of deals get done. Using an attorney with mismatched cultural expectations will not only put the deal at risk but drive costs way up. * Beware deal fatigue! Deals that drag on too long have a way of not happening. Get together in person, hammer out key details, turn documents quickly and get it done. It is not done until the wire transfer clears! * As far as compensation to you, there are three key levers they can pull: Cash now, cash later and equity. How they offer to distribute those tells you a lot about how they see what they're buying. If any of those three buckets is zero, be wary. Good luck! |