Finding Someone To Manage Selling a Software Company? 165
rrrrw22 writes "My company has spent the last year developing a framework for creating games on Facebook, Myspace, and Twitter. While we had originally planned to release the product to the public and take a percentage of the revenue, we have realized that we can make more money by selling the application to a funded company entering the social gaming space. Our problem is we don't have many other contacts in the social gaming space and would like to find someone to manage selling the company for us (in exchange for a percentage of the sale.) Where can we go about finding someone with the skills and contacts to sell a product like this? What experiences have others had trying to sell a company that we can learn from?"
Re:you want VCs and an exit strategy, basically (Score:4, Informative)
Yes, in principal. But that's not pragmatic - this sounds way too small to interest VCs these days. Speaking from experience, they aren't going to give you the time of day unless you're asking for at least $3M, and ideally more like $5-10M.
I'd suggest local angels (individuals, not angel groups which often think they are VCs and act similarly) if you want, say, $100K-$1M, and friends-and-family or revenue (can be from random consulting while the product ramps up) for less than that.
Re:Prove that its worth buying (Score:5, Informative)
Its out in public now at http://www.appainter.com/
Re:Translation to english (Score:4, Informative)
Actually, we've made quite a bit of money off of several successful games we built on the framework, we just realized that getting everyday people off the internet to build successful game isn't going to work.
Re:That's not a company (Score:5, Informative)
We've had severial successful games on the framework, so it is proven:
http://apps.facebook.com/thesummoning/
http://apps.facebook.com/hammerfall/
http://apps.facebook.com/bandbattle/
Total our games have about 6 million users.
Re:Wait a minute (Score:2, Informative)
We were saying we can't make money from trying to have normal people build games on it. To make good games on it you have to have an organized group of people (like we have done)
Beware the first link! (Score:2, Informative)
The link for the game "The Summoning" does NOT ask your permission to access your Facebook data. It just takes you straight to the character-selection screen. If you pull up that link while you have an active Facebook cookie in your browser, be sure to go into your "Application Settings" and remove it from the list of authorized applications, or else this fly-by-night (and obviously pretty desperate) company has full access to whatever data can be mined from your Facebook account.
Best reply so far, I've done this (Score:4, Informative)
The poster is going to have to find someone who has been through this and get referrals. Sorry, that means meeting people and using social skills. Emailing potential buyers probably won't help because if you don't know any people in the space, you also don't know how to communicate with them out of the blue; you'll probably put them off, if they read your message at all.
Get an attorney who has experience doing these types of deals, this has saved me from failed deals. The guy who did Daddy & Mommy's will or plays golf with Uncle Barney or whatever isn't the way to go.
Trying to sell your company through one of the hundreds of business for sale websites brings tire kickers and scam replies. Going to the local business brokerage franchise (basically a bunch of commission-only out-of-work real estate salesmen) is usually a dead end for this type of thing, they won't grasp what you are selling, but they will have free balloons for the kiddies.
That is not true. (Score:2, Informative)
Use these guys... they worked for us (Score:3, Informative)
Re:Best reply so far, I've done this (Score:3, Informative)
Yep, this is a situation where attorneys pay off. When selling a company ($1M - $5M) I tell people to prepare to pay $15K to $50K for a transaction attorney, but an IP attorney will probably run more. Buyers will try last minute tricks to cut the price in half or more so an experienced lawyer is a must.
While I'm at it... Some other comments have said a broker wants 6%, that's only for a quite big deal (assuming some variant of a sliding Lehman scale is used). Even in the $1Million range 10% is common (even 15% in some states like Florida).
Another commenter said something about getting MBA students involved. No way. This stuff is way, way above a student class project.
Acumen Corporate Development (Score:4, Informative)
Re:That's not a company (Score:5, Informative)
It seems that others might be interested in any revenue that is generated
http://mercuralis.deviantart.com/journal/23000665/ [deviantart.com]
Re:Why not (Score:4, Informative)
Re:Perfect example... (Score:5, Informative)
And another thing. You are trying to enter a field where MOST of your competitors are CROOKS. Do you really want to be associated with such a label as a "Social Network Game Producer" when those that already are seem to be jumping ship in an attempt salvage what little reputation they retain now the cat is out of the bag regarding the less then savory business practices they've used?
If this link [deviantart.com] is to be believed, it seems they will be quite at home associating with crooks.