Your Company Has a Lawyer. You Don't.
What Creative Founders Need to Know Before They Sell.
My company has a lawyer. Why do I need my own? If your attorney is paid by your company, their primary duty is to the company and its shareholders — not to you. This creates a direct conflict of interest when your personal interests diverge from the company's, which they will during any significant transaction. The company's lawyer is obligated to act in the best interest of the company. Your individual needs are, at best, secondary. Read more on my Substack article “Your Company Has a Lawyer. You Don’t: What Creative Founders Need to Know Before They Sell” or contact me.
Other than valuation, what really matters? Valuation gets all the attention. The terms will have more influence on your future. Confirm alignment — or irreconcilable differences — on values, goals, and process. Don't assume shared expectations on anything, including how long you're expected to stay. Have the awkward conversations before closing, not after. When in doubt, get it in writing. For more on the emotional and psychological factors that cost founders in a sale, read “When the Next Investor Becomes Mr. Right Now: What Emotion Costs Creative Founders in a Sale.”
Can't I negotiate the details later? Bargaining power disappears before the ink is dry. If you don't lock in limitations on how your trademark can be used — even if it's your name — you'll have no say afterward. The negotiation window is narrow. Most founders miss it by being unprepared.
For more, visit my Substack. If you're considering a sale, let's talk.