Engineering & Navigating Through An Exit For Your Startup

This episode goes in-depth into what founders can do to engineer & navigate an exit for their startup. We cover everything from various types of exit routes (classic M&A, Private Equity buyouts, acqui-hires, asset sales, etc.), what large acquirers look for, generating acquisition interest, fielding corp dev inbounds, valuation methods, key deal terms, how to become diligence-ready, and finally, leaning on investors, bankers, lawyers & advisors to help drive an exit. Joining me for this discussion are Madhu Chamarty and Hanz Kurdi, Founding Partners of HKMC, a Silicon Valley-based advisory firm that supports early-stage founders and emerging VC managers in achieving their most important milestones, including fundraising, go-to-market, and exits. Each of them has 20+ years of experience in navigating exits. Hanz’s prior startups were acquired by PayPal and Google, while Madhu’s prior HRTech startup was acquired by Lightcast. TIME STAMPS: (01:06) The HKMC backstory (05:57) Today’s AI exit environment (12:37) What do large tech acquirers look for in potential M&A targets? (23:13) Is Private Equity a viable exit channel for software startups? (26:23) Should founders entertain inbounds from corp dev? (32:24) What can founders do to create a “salvage exit” in case they don't achieve PMF? (43:40) What can founders at $10-100Mn ARR do to engineer an exit? (52:40) How do acquirers typically value startups? (58:38) How do acqui-hire deals work? (1:00:36) Key legal terms during M&A deals (1:05:00) How can founders become M&A diligence-ready? (1:11:51) What can VCs do to help drive exits for their portfolio? (1:20:58) When do M&A advisors/ I-bankers become relevant in a company's lifecycle? Connect with Madhu - https://www.linkedin.com/in/mchamarty/ and Hanz - https://www.linkedin.com/in/hanzkurdi/ ***** Check out "An Operator's Blog" (https://operator.blog/) for weekly posts on Startups, Investing, and Life. I am a venture investor focused on the US-India corridor. Feel free to reach out on LinkedIn (https://www.linkedin.com/in/soumitrasharma5/) and follow me on X (@soumitra_sharma).