How to hire with the exit in mind

Exit planning and team building should be tightly connected

The team is the most critical component of most every startup buyout. Decisions you make about who and how to hire will have a profound effect on your startup's acquisition potential.

Some things to keep in mind with every hire:

Great people are worth a lot in an exit. Some bare acquihires have priced above $1 million per developer for strong teams. When you have to stretch on compensation for top talent, take comfort in the exit ROI.

Versatility matters. Fuller-stack developers are likely to have a better skills overlap with the needs of a larger set of potential buyers. Try to verify a candidate's capabilities across the board and not only on the languages they'll use for you.

You need people who will stay. Buyers want a high-velocity group ready to hit the ground running. Nothing undermines this like post-acquisition attrition. Buyer's like to see stable work histories, prior big company experience and personal connections among teammates. Over-reliance on non-employee contractors for key functions can cost you.

Give the team deal protection. Include "double-trigger" acceleration in your stock option agreements, which vest all shares if you're terminated without cause after an acquisition. Remove any uncertainty around the team's financial opportunity in the exit, so the they can focus on helping get the deal done.

The BestExit process hones in on your team and hiring to drive toward a great exit. Get in touch to learn more.