Why a “short list” of acquirers may be a trap
“Andrew McConnell owned a SaaS company that he eventually sold. His business helped vacation rental managers price homes. In the first year he decided to sell he thought he could sell his business by himself. This resulted in a lost year,” shares Sam Thompson, a Minneapolis business broker and the president of M&A firm Transitions In Business. “Andrew shares the challenges he had in selling his business.”
Andrew McConnell built a SaaS company that helped vacation rental managers price homes like airlines using dynamic pricing based on demand. He eventually successfully exited, but not before learning the hard way that building a company and selling one require two entirely different skill sets.
In this episode of Built to Sell Radio, Andrew walks through the pivot that saved his business, why his VC backers stayed on board, and the exact moment he realized that a “short buyer list” is a dangerous trap for founders.
Listen in to discover how to:
- Spot the “hidden ceiling” in a business that looks like it’s doubling—right up until it isn’t.
- Move a cap table from a failed bet into a new one without lighting your professional relationships on fire.
- Understand liquidation preference in plain English (and why it can erase a founder’s take-home pay at exit).
- See why a banker’s real value isn’t just managing the process—it’s forcing pressure and widening the field of potential acquirers
- Avoid the “I can sell this myself” mindset that often results in a year of free research for buyers and zero leverage for you.