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#573November 24, 202354:53

My $100M Mistake + 6 Company Exit F**k Ups To Avoid

About This Episode

Sam Parr and Shaan Puri reflect on the major errors they made during the multi-million dollar sales of their respective companies. They share a series of 'Never Will I Ever' lessons regarding tax shielding, negotiation psychology, and the grueling due diligence process.

Episode Description

Episode 522: Shaan Puri (https://twitter.com/ShaanVP) and Sam Parr (https://twitter.com/theSamParr) play the drinking game “Never Will I Ever,” revealing all the painful mistakes they made when selling their +$10M companies. No more small boy spreadsheets, build your business on the free HubSpot CRM: https://mfmpod.link/hrd

Show Notes

  • 0:00Intro
  • 2:30Ignoring QSBS
  • 7:30Shutting down a company
  • 13:00Putting out desperate vibes
  • 17:30Choosing the highest offer over the best offer
  • 22:00Assuming you’re talking to the decision-maker
  • 27:00Not getting uncomfortable in a negotiation
  • 37:00Being disorganized
  • 43:00Muddying your margins
  • 47:00Closing a deal remotely

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Key Takeaways

1

Leverage the QSBS (Qualified Small Business Stock) tax exemption early to protect up to $10M or 10x your investment from federal capital gains taxes upon exit.

2

Never shut down a project with user momentum without first attempting to sell the specific technology or features to larger incumbents as a strategic acquisition.

3

Prioritize 'likelihood to close' over the absolute highest offer price, as complex deals from disorganized buyers often collapse during the final stages of due diligence.

Guest Graveyard Mentions

SPP

Shaan Puri's Parents

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Quick Stats

Duration54:53
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