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Article : The Entrepreneur Got Screwed, But Didn't Have To

This is an article I published on Medium about an M&A deal that went completely, horribly wrong. Part cautionary tale, part advice. Feel free to discuss, and you've been burned in a bad deal, share your experience as well.

https://medium.com/tech-talk/fad87309afda

4 Replies

Vijay Goel, MD
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Vijay Goel, MD Entrepreneur • Advisor
Founder Chefalytics, Co-owner Bite Catering Couture, Independent consultant (ex-McKinsey)
I'm a little confused. If the next best option was to shut the company down (and I've been there and pulled the plug and then spent the next few years paying back family), why was selling and then getting terminated quickly worse financially? Were there assets that would have been worth something on liquidation that disappeared? ------------------------- Vijay Goel, M.D. Principal, Goel Insights [removed to protect privacy] www.goelinsights.com Schedule time to talk: http://meetme.so/vijaygoel
Brian McConnell
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Brian McConnell Entrepreneur
Head of Localization at Medium.com
We lost some valuable intellectual property in the process, as well as about half a million dollars in earnout to be paid over time, not counting performance based royalties on future revenues. The IP was a group communication platform that was accessible by voice, text and IM, and significantly improved on conference calling platforms available at the time. So even if we had put the company on ice, the IP would have still been ours. In retrospect, it would have been quite valuable. Plus, there was the psychic cost of dealing with such unpleasant people, and then their attorneys, in the aftermath.

The main point of the piece though is to trust your gut and not to let friendships cloud business decisions. Had I done so, I would have avoided this outcome.
Eric Rogness
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Eric Rogness Entrepreneur
Technical Product Manager
Thanks for sharing, Brian. Can't wait to see what you do next!
Clynton Caines
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Clynton Caines Entrepreneur
SharePoint Developer at Discover Technologies
That was a good and fast read. Thanks. Sorry you got screwed, man. Some lessons are really, really expensive. Good luck with your next gig!
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