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Molson_Hart's profile
Molson Hart
Molson Hart
Molson Hart
@Molson_Hart

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Molson Hart

@Molson_Hart

CEO at http://amazon.com/viahart . CEO at http://edisonlf.com . I tweet about business, e-commerce, supply chain, health, law, & infrastructure

Austin, TX
Joined July 2015

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    1. Michael Girdley‏ @mgirdley Jan 11
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      Great HN thread with insight into the mind of first-time sellers of small companies (and why M&A will remain inefficient): https://news.ycombinator.com/item?id=22013700 … Many have bizarre views on what's "right" or fair. One gem:pic.twitter.com/10Da5TnTSt

      2 replies 0 retweets 5 likes
    2. Molson Hart‏ @Molson_Hart Jan 11
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      Replying to @mgirdley

      Your point is that a period of exclusive negotiation is SOP right?

      1 reply 0 retweets 1 like
    3. Michael Girdley‏ @mgirdley Jan 11
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      Replying to @Molson_Hart

      Yes! It's customary for a buyer to be granted a period of exclusivity (30-90 days) after the LOI is signed -- since they're spending $ and time on the deal. Two things happen after LOI: - generate draft agreements (so lawyer fees start) - conduct diligence (which isn't free)

      1 reply 0 retweets 2 likes
    4. Molson Hart‏ @Molson_Hart Jan 11
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      Replying to @mgirdley

      There are a lot of people, both on twitter and on hacker news, who talk the talk, but have never walked the walk.

      1 reply 0 retweets 2 likes
    5. Michael Girdley‏ @mgirdley Jan 11
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      Replying to @Molson_Hart

      That’s what the internet is for, right? :-)

      2 replies 0 retweets 0 likes
    6. Nick‏ @NickatFP Jan 11
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      Replying to @mgirdley @Molson_Hart

      Agree with Michael here - Exclusivity period is standard but seller also probly gets something from escrow if buyer bails

      1 reply 0 retweets 2 likes
    7. Molson Hart‏ @Molson_Hart Jan 11
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      Replying to @NickatFP @mgirdley

      Even in microcap deals (we're talking like $1-$10 million dollar SBA stuff)? Something from escrow feels like big boy deals.

      2 replies 0 retweets 1 like
    8. Michael Girdley‏ @mgirdley Jan 11
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      Replying to @Molson_Hart @NickatFP

      It’s atypical in my experience at that size. Sellers generally spend a good amount of time to understand if the Buyers are for real. But something like a small amount to cover seller expenses is not crazy at a breakup.

      1 reply 0 retweets 1 like
    9. Michael Girdley‏ @mgirdley Jan 11
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      Replying to @mgirdley @Molson_Hart @NickatFP

      If you read the Baremetrics guys’ story — the offer he got was too good to be true. The buyer was a micro search fund that hoped and prayed it could raise the money, which didn’t happen. In his case, he didn’t do much diligence on the buyer and it hurt him.

      1 reply 0 retweets 2 likes
      Molson Hart‏ @Molson_Hart Jan 11
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      Replying to @mgirdley @NickatFP

      Ah, didn't, but I'm in a space where EVERYONE is selling their business (vertically integrated Alibaba to Amazon FBA companies) and I know a guy who has been left at the altar 3 times because he keeps going for high multiples instead of solid people.

      3:23 PM - 11 Jan 2020
      • 1 Like
      • Michael Girdley
      1 reply 0 retweets 1 like
        1. New conversation
        2. Michael Girdley‏ @mgirdley Jan 11
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          Replying to @Molson_Hart @NickatFP

          Neglected also in his account is that SAAS metrics is a bad business: Customers don’t want to pay for it. Only way to make it work is to use it as marketing for another line of business. (I researched that space relatively deeply awhile ago...)

          1 reply 0 retweets 0 likes
        3. Molson Hart‏ @Molson_Hart Jan 11
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          Replying to @mgirdley @NickatFP

          My brother @realHiltonHart joined a techstars startup that was doing SAAS metrics for a few months and the head guy there said: "[SAAS metrics] is a vitamin, not a pain killer." Always love that line.

          0 replies 0 retweets 1 like
        4. End of conversation

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