For entrepreneurs, few things are as flattering or exciting as a potential acquisition. When someone approaches you with an interest in buying your business, it seems like the ultimate validation of your ideas, effort, and team. Unfortunately, this flattery can often cloud founders’ judgment and lead to serious problems. I’ve been in this position a few times now at BodeTree and have let my naïveté get the better of me on more than one occasion. Even though we’ve never been looking to sell, as the CEO I have a fiduciary responsibility to my shareholders to explore legitimate opportunities that come our way. Over the years, I’ve learned the hard way that interest from potential acquirers isn’t always what it seems.
If it sounds too good to be true, it probably is.
Recognize that everything is a build or buy scenario.
Don’t get too excited.