The BVA Co-Founders Cory Miller and Jeff Meziere interviewed Tony Perez about his experience with Mergers & Acquisitions in the website security business.
Tony shared the following advice on how to manage Mergers and Acquisitions:
- Examine closely why you are pulling in a partner investor and what the result will be.
- If you aren't willing to listen to their advice then don't take them on as a strategic partner.
- The relationship comes with an obligation.
- The longer you have bootstrapped the harder it will be to get a strategic partner.
- Leverage the partnership, it doesn't just work one way.
- There are two types of buyers: financial and strategic.
- Questions to ask: what do you think of our people, will there be earn outs, will you pay with cash or equity, and other structure considerations.
- Once you sign the term sheet/letter of intent the power shifts.
- Most companies think they have no power, but you will be serving a problem for your partner and that gives you power.
- It helps to have an impartial third party involved.
- Start the conversation by helping the potential buyer solve their problem.
- Be aware of your industry space and what is going on around you.
- Make sure you fully understand the deal from the perspective of the potential buyer.
- Keep the door open for conversation even if they say, 'No', because it doesn't mean it's final.
Tony Perez is the Founder of CleanBrowsing and NOC.org. Previously he was an executive at GoDaddy, responsible for their Security Product Group ($350M ARR+), and was the CEO / Co-Founder of a startup, Sucuri, that exited in 2017.
Tony is especially interested in networking technologies that we rely on the most. He is currently deeply immersed in the world of the Domain Name System (DNS), building CleanBrowsing (DNS Resolver) and NOC (Authoritative DNS, CDN, WAF, Monitor).
He describes himself as a full-time technologist, and part-time cattle and horse rancher. He is passionate about building companies.