How to Sell a 12 Employee Company for $17 Million

How to Sell a 12 Employee Company for $17 Million

“Rafael Zimberhoff founded ShipRush, an IT company, and eventually sold it for $17 million. He shares his selling journey which includes how to find a good M&A professional,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “He also provides insight into dealing with the “no shop” clause in the LOI”

Rafael Zimberoff built ShipRush, an application that helps businesses streamline their technology, to 12 full-time employees when he sold it to Descartes for $14 million-plus a $3 million earn-out.

There are many takeaways from this episode, including:

  • How to convince large companies to buy your product rather than build it themselves.
  • What to do when your largest competitors get acquired.
  • How to find a suitable M&A professional.
  • Why being part of the “payment chain” gives you negotiating leverage.
  • Telltale signs you picked the right M&A banker.
  • Why you should never negotiate the sale of your own business (even if you’re a great deal maker).
  • What to do if you get a call from an acquirer after you’ve signed a “no shop” clause.

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