They Got Acquired - Due diligence firm vets its own sale 🤔

June 28, 2022
​Read on web​

Selling a company is complicated enough.

But what if your prospective buyer is a direct competitor in your industry?
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That's what Chris Yates had to maneuver when he sold Centurica, a due diligence firm, to a direct competitor. He had to walk the line between sharing enough information to move forward with the sale and making sure he didn't share too much too soon.

Fortunately for Yates, he could lean on his years of due diligence experience during negotiations that would reveal his company's inner workings.

👉 How this founder navigated due diligence when selling to a direct competitor​

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Behind the business

Here's a mistake I've made in the past while building media brands:
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Not requiring freelancers to sign a contract to keep things moving faster.

For years, with one of my prior content sites, my editors and I agreed on assignments and rates with writers via email. We mostly worked with writers we knew and trusted, so we weren't worried about being ghosted.

But here's the thing we didn't have because of that approach: confirmation, in writing, that the company owns the right to the content.

When I sold that brand, the buyer asked for all of our contracts, and I didn't have much to give them. That detail didn't hold up the sale. But for another buyer, it might have been a deal-breaker.
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Now I always have freelancers sign contracts before we begin work together — no exceptions. This clarifies not only that we own the content, but other the terms of the work, too. It gets both parties on the same page about expectations.

One hurdle I've come across? While some freelancers won't work without a contract, others are nervous about signing them. I put them at ease by sending a Loom video that explains all the legalese in the contract. (I recorded it once and use it for every new contractor.)

Alexis Grant @alexisgrant Sending a contract to freelancers before beginning your engagement? Record a quick @Loom that explains what all that legalese means & send it with the contract. You can probably use the same Loom for several contractors. Thoughtful touch to start off a working relationship. December 14th 2021 6 Retweets 34 Likes

I worked with a law firm to draft an independent contractor agreement when we first launched the brand, and I tweak that template for each contractor. Then I send it for easy signature with PandaDoc.

Getting this sorted at the start of any contractor relationship is good for the company and good for the contractor. And if we ever end up selling this company years from now, all our contracts will be organized and ready.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​
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